The Bureau of International Recycling’s (BIR) divisional president William Schmiedel, also president of US-based scrap recycling company Sims Group Global Trade Corporation, has stated that during July and August this year global steel prices strengthened and continued to support the world’s ferrous scrap prices, especially in Turkey. July represented a record month for Turkish crude steel production at over 3 million metric tons, and by August scrap prices had reached a five-year high of $357/mt CFR Turkey. The BIR divisional president said that year-over-year hot metal production did not increase in Turkey; therefore, the higher output came from electric arc furnace production - hence more scrap consumption, resulting in higher prices.
Mr. Schmiedel went on to say that in China the government-enforced shutdown of induction furnaces and illegal steel mills, as well as pollution control measures, continue to influence the domestic steel market. The production/supply constraints have led to increased steel prices and a subsequent reduction of 29 percent in the country’s exports in January-August 2017 when compared to the same period last year. Rebar futures, a sensor of Chinese sentiment, have seen variations but have maintained an upward trend, he stated.