Scrap metal use in steel production increased in 2017

The global use of ferrous scrap for the steel industry rose to a higher level of steel production last year, according to a report by the Bureau of International Recycling (BIR) published at its annual conference in Barcelona.

This led to an increase in the share of EAF steel production globally to 26.3% last year, up 0.8% over 2016, with a total share of 35 scrap used for steel production. 5% in 2017.

Scrap metal consumption in the EU increased 5.6% year-on-year to 93.35 million, while US consumption rose 3.7% to 58.8 million tonnes.

The demand for scrap metal in Korea increased by 11.3% to 30.3 million tons, and in Japan - by 6.6% to 35.8 million tons. But the biggest surge was in Turkey - by 17% to 30.3 million tons.

China remains the largest consumer of scrap metal at 147.9 million tonnes. But comparisons are challenging as the use of scrap metal in induction furnaces was not reported until 2016, the BIR report said.

The use of scrap steel in China is expected to increase significantly in the coming years as the country adopts stricter environmental policies and targets for green steel production.

With scrap metal consumption rising, prices rose on average 28% in 2017, reaching Turkey imports levels of around $ 360 /T CFR for HMS 1/2 (80:20) last August, while iron ore prices - other steel material.

Since the increase in consumption of ferrous scrap in key regions was not fully met by higher domestic supplies, imports in these countries increased accordingly.

The world's largest importer of scrap, Turkey, acquired about 21 million tonnes in 2017 from overseas, up 18.4% over the previous quarter, accounting for about three quarters of the growth in demand in the country, and in the other quarter - from the local offer.

Scrap imports from South Korea - the second largest global importer of scrap - rose 5.6% from 2016 to 6.2 million tonnes last year.

As in 2016, the EU countries and the US remained the main exporting regions for scrap metal in the world, with Turkey being the main recipient.

EU exports rose 12.9% to 20 million tonnes, while exports of ferrous scrap to the United States totaled 15 million tonnes, up 17.1% year-on-year.