Expectations of global demand recovery for scrap steel this year
A senior official in the steel industry expected yesterday a recovery on the global consumption of steel scrap in 2010 after falling last year, with the recovery of the global production due to the improved demand.
Yet Welki the former Envoy of steel sector at the International office for recycling have not give a number of the increased expectations this year, saying: "We know that the production of steel has increased, and thus there is a production of electric arc furnaces, the consumption figures for scrap in 2010 will be better than 2009."
The study conducted by Welki the for the benefit of the office on the scrap market in 2009 showed that the use of scrap in the global steel industry fell by 13.2 percent to 460 million tons in 2009, while China's imports jumped from scrap metal to the highest level ever ..
Figures shows that production of electric arc furnaces in the world fell to 344 million tons last year from 409 million tons in 2008. It confirms the statements and figures by Welki on the production in 2009 from the World Association for the steel industry, which showed a decrease of 33.9 percent in the United States and 22.8 percent in the European Union.
Global production of crude steel declined 8 percent last year to 1.22 billion tons, as the recession forced steel makers to cut production in line with falling demand. But China bucked the trend, rising to the highest production level ever at 567.8 million tons, representing about 47 percent of gross world product, which in turn drove the country's consumption of scrap.
A study by the International Bureau for recycling showed that imports of China's the largest producer and consumer of steel in the world of steel scrap jumped 281.4 percent to 13.7 million tons compared with 2008. . "
Prices for steel ore rose in the spot market more than 50 percent (February) and (April), when it recorded the highest level since August 2008. While Turkey topped the importers of steel scrap in the world in 2009, and imports stood at 15.6 million tons.
The United States remains the largest exporter of scrap steel in the world with exports amounting to 22.4 million tons, an increase of 3.4 percent in 2009 compared with the previous year, while EU exports rose more than 22 percent to 15.6 million tons.