Pandemic hits scrap use more than steelmaking: BIR

Ferrous scrap use in the key countries covered by the Bureau of International Recycling (BIR) declined -10.5% on-year in the first half of 2020 to 209.83 million tonnes. Use in largest consumer China fell -7.3% to 93.75mt, but it rose 26% on-quarter in the second quarter to 52.22mt, Kallanish notes.

Scrap use in the EU28, the US and Russia fell -13%, -19% and -7% respectively to 39.81mt, 20.2mt and 14.55mt. Turkish use fell -4% to 13.66mt, as the electric arc furnace-based steel output decline was slightly more pronounced than the country’s overall crude steel production.

The Covid-19 pandemic had a more negative influence on global steel scrap use than it did on crude steel production, BIR says. Scrap imports, meanwhile, rose 7.8% on-year into largest importer Turkey in H1 to 9.01mt.

Switzerland also saw an import increase, by 10.2% to 238,000t. South Korea’s imports fell -34% to 2.41mt, while the US and EU saw -13% and -9% declines respectively to 1.98mt and 1.37mt.

In terms of exports, the EU’s shipments abroad fell -11% to 9.78mt, with exports to India halving to 563,000t. However, its deliveries rose to Turkey, Egypt and Pakistan by 2.6%, 14.1% and 3.5% respectively to 6.14mt, 969,000t and 733,000t.

The UK was the bloc’s largest exporter, shipping 2.5mt, down -25%. US scrap exports fell -2.3% to 8.4mt, with shipments to Taiwan down -2.6% to 850,000t, deliveries to Canada down -32% to 614,000t and shipments to Korea down -46% to 390,000t.

Shipments increased, however, to Turkey by 11% to 1.95mt, Mexico by 36% to 950,000t and Malaysia by 104% to 901,000t.

Japan’s exports soared 38% to 4.88mt, with shipments to Korea down -24% to 1.63mt, but those to Vietnam and Taiwan up 84% and 189% respectively to 1.57mt and 700,000t.