Scandinavia

July is the main vacation month in Scandinavia and many companies are partially or completely closed for two or three weeks. This naturally affects activity in the recycled steel industry, which is currently operating at a relatively low level.

The competitiveness of Turkish steel mills in relation to purchases from Europe has been challenged since early spring. A toxic cocktail of rising energy prices, trade barriers, a large supply of surplus steel from China and the Turkish government’s halt on exports of, among other items, rebar to Israel means that Turkey’s consumption of recycled steel has been declining since 2021.

The Turkish Steel Index has exhibited rarely-seen stability since early March at between US$ 378 and 390 per tonne. With limited demand for recycled steel, it is not immediately obvious what could bring the market out of its current stagnation. This situation provides good opportunities for European steel mills to strengthen their positions, especially in relation to shredded material.

The low supply of recycled steel makes it difficult for industry players to maintain volumes to fill their capacities. As is traditional in the recycled steel industry, this limited supply intensifies competition and reduces margins - and many dealers are currently challenged with regard to their revenues and earnings.

In early July, prices for shredded have been rising slightly in the Indian market but this outlet is still not particularly conducive to Scandinavian material as high container freight rates make achievable sales prices unattractive.