Scandinavia

July and August are vacation months in Scandinavia, and it is evident that all business activity is running at a lower level. This also applies to the recycled steel industry, providing many with an opportunity to recuperate after a challenging period. Recent geopolitical uncertainty has affected Scandinavia, with the Danish consumer confidence indicator falling to its lowest level in more than 37 years.

In social terms, uncertainty about interest rates, inflation and other issues is never good for activity levels, and very often this also means a fall in recycled steel volumes. This is the case at present as there has been a clear decline in tonnages this year.

The Turkish market, usually the price-setter for HMS qualities in Scandinavia, has been remarkably stable in recent months: since mid-May, official prices have remained between US$ 340 and US$ 345 per tonne. With the US dollar having fallen significantly against the Euro, this means a real decline in sales prices achievable in Turkey.

There are no immediate signs suggesting improved market conditions in the short term. For now, current conditions have given an advantage to Europe-based steel mills.