BIR Convention Holds Optimistic View on Ferrous Scrap Sector

SEATTLE (Scrap Monster): The participants at the Ferrous Division meeting held at Bureau of International Recycling's (BIR) World Recycling Convention presented optimistic view on ferrous scrap sector. The sector is poised to show signs of improvement even in the midst of challenges, it noted.

According to Christian Rubach-the body's Ferrous Division President, the global conditions in the ferrous scrap sector still remains challenging. However, the sector has already shown some signs of improvement during recent weeks which may boost the sector performance during the future.

The global apparent steel consumption is expected to remain higher by 3-5% in 2014 when compared with the previous year, but overcapacity woes may turn out to be a dampener for the entire sector. The change in stance by EUROFER to permit unrestricted exports of surplus steel scrap in Europe may be a game changer for the industry, he added.

During his presentation Tom Bird, President, European Frrous Recovery and Recycling Federation (EFR) highlighted the challenges faced by the domestic ferrous scrap industry in the European countries. According to him, tough competitions have reduced the margins on ferrous scrap trades in the region. He warned of the continuing turmoil in Ukraine to have rippling effect all over the European countries. However, he noted that the Ukraine crisis have resulted in increased supply from Turkey. The Turkish market is expected to remain buoyant during the year, which may also keep the prices high, he hoped.