US scrap exports may not create problem as expected

US scrap exports may not create problem as expected

As previously reported by SteelOrbis, there were different views of approach to the scrap problem in US, stemmed from demand by US mini-mills to the Department of Commerce (DOC) for restriction of scrap exports. However, export restriction on US scrap may not be that crucial for the time being taking into account that Chinese economy started cooling down and accordingly producers in certain countries such as Turkey and Korea either focused on other market or slowed down their purchases of scrap. For instance, scrap imports by Turkish producers are mainly effected from Black Sea nowadays. On the other hand, a possible restriction of US scrap exports may cause problems for the EU. EU officials are of the opinion that, such restriction by the US may lead to Chinese buyers focusing their purchases on EU origin and result in fluctuation in this market with new rises in prices. Such fact may possibly force EU to take action against such risks, creating unnecessary complications. According to EU officials, current slowdown in Chinese economy has slightly reduced their purchases but basically, the purchase quantities are expected to maintain their considerable levels.