With Turkey and China consuming increasing share of US scrap supplies and container business opening up more US scrap suppliers to the global markets, 2009 US scrap exports are on track to be the highest on record, David Hodory of David J. Joseph Company (DJJ) told attendees of the first-ever SteelOrbis Webinar, held Wednesday afternoon.
Mr. Hodory gave a 30-minute online presentation which detailed DJJ's outlook for the global scrap market. Attendees were able to listen to by calling in or logging in over the Internet, and ask questions afterwards.
Although US steel shipments are down an estimated 33 percent this year and US raw steel production rates languished at well under 50 percent for the first half of the year, Hodory's figures show that appetite for US ferrous scrap has grown, driven by a vibrant and growing export market.
Hodory said that in 2008, US scrap exports hit a record high that was 29 percent higher than in 2007, and at current rates, 2009 exports will surpass 2008 records. Contributing to the growing US scrap export market are surging economies in Asia, particularly China, and increasing reliance of Turkey on US scrap supplies. The proliferation of container scrap shipments, as opposed to bulk, have also aided US scrap exports, as it has allowed smaller players and inland suppliers to enter the export market.
Looking to next year, even with US raw steel production capacity utilization expected to linger at 64 to 65 percent in 2010, global appetites for US scrap should remain robust, aided by a favorable USD exchange rate with other world currencies. As China's steel production keeps rising, and with Turkish producers increasingly relying on US supplies to meet their scrap needs, the prospects for continued growth in US scrap exports look strong, indeed.
Stay tuned to www.steelorbis.com and www.steelorbisevents.com for the details of the next SteelOrbis Webinar, which will feature Thomas Danjczek of the Steel Manufacturers Association.