On the last day of the SteelOrbis 2023 Spring Conference & 88th IREPAS Meeting held in Barcelona on May 7-9, Jens Björkman from Stena Metal International, the chairman of the raw material suppliers committee, summarized the committee meeting findings stating that the past few months have been challenging for the global steel market due to drastic price drops, higher energy prices and weak global demand.
Mr. Björkman pointed out that the energy crisis in the EU has eased, going back to pre-war levels and standing at a 10-year average, though high interest rates still remain a challenge. He said that there is a likelihood of production cuts ahead of the summer, which would bring down scrap prices and orders.
Regarding the potential consequences of the European Parliament’s recent revision of its Waste Shipment Regulation, Mr. Björkman stated that scrap shipments to non-OECD countries will be a major challenge for the EU, fortunately Turkey - which is a major destination for scrap supply - will not be affected. In addition, the committee chairman noted that within a five-year timeframe the EU will consume most of the scrap generated in the region itself since its steel production will shift to electric arc furnaces within the scope of green steel targets.
Aside from multiple challenges, Turkey is facing muted trade activities ahead of the approaching elections amid production cuts and weak demand for finished steel products, the committee chairman stated. He went on to say that once the election period is over Turkey is likely to see some pick-up in domestic business, though the demand in the local market will not be sufficient and so Turkey will have to try to export again. Regarding Turkey’s scrap demand, the committee chairman said that “a slower normal demand” is expected in the coming months.