2016 Recycling Confex Middle East: Which way next?
2016 Recycling Confex Middle East: Which way next?
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China and South Korea provide just two of several examples of nations with formerly large appetites for imported ferrous scrap that are now finding more material within their own borders.
In a presentation at the 2016 Recycling Confex Middle East, which took place in Dubai, United Arab Emirates, in early December, Ved Prakash of Belgium-based Gemini Corporation remarked that the volume of scrap that South Korea imports annually fell by 40% between 2012 and 2015. South Korea, said Prakash, is not alone in its reduced appetite for imported scrap.
The result of such trends is that cross-border ferrous scrap trading has declined from a peak of 105.6 million tonnes in 2011 to fewer than 84 million tonnes in 2015. Prakash indicated 2016 could provide a slight rebound to scrap traders, with a potential 90 million tonnes being traded by year’s end.
Despite the slight rebound in 2016, Prakash said, “Markets are maturing [and] more countries are becoming self-sufficient” in terms of ferrous scrap. He said that at their peak, South Korea, Taiwan and India required a combined 16 million tonnes of ferrous scrap imports and that it will be “difficult to replace this 16 million tonnes.”
Turkey remains a major importer, said Prakash, however its steel industry has shown a willingness to import billets for rolling when ferrous scrap gets too expensive. Among the emerging nations that are helping to absorb some of the exported North American and European scrap are Bangladesh, Mexico, Iran and Peru, he noted.
China’s situation may bear the most watching, added Prakash. If that nation continues to rely mainly on basic oxygen furnace (BOF) steel production, it could quickly become a net ferrous scrap exporter.
Adding to the sector’s challenges, said Prakash, is the likelihood of increased container shipping rates as alliance-seeking and consolidation continues in that industry. Prakash said 40 percent of the global ferrous scrap trade is now containerized, a trend that occurred in part because of low, competitive shipping rates.
“This is a hanging sword that could drop at any time,” Prakash said of the threat of higher ocean-going container shipping rates imposed by a more consolidated industry. In any event, he added, “ferrous scrap trading is likely to become more regional” in the future.
In remarks that opened the Recycling Confex Middle East event, Ranjit Baxi, the current president of the Brussels-based Bureau of International Recycling (BIR), referred to both challenges facing recyclers and opportunities open to them.
Baxi said that on a global scale, GDP growth in nations with emerging economies and the growth of the middle class in those nations “means, for us in this room, demand for raw materials is going to rise” as those middle-class citizens move into new buildings, buy more packaged goods and then purchase appliances and cars.
At the same time, concerns about reducing carbon emissions and diverting materials from landfills means, said Baxi, “Recycling is a necessity to help meet the growing demands of consumers around the world.”
The BIR president said he wanted more recyclers to publicize that they help to save 700 million tonnes of carbon emissions each year. “I want this to be recognized,” he stated.
The 2016 Recycling Confex Middle East was Dec. 5-6 at the Hyatt Regency Dubai in the United Arab Emirates.
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Source: Recycling Today
2016 Recycling Confex Middle East: Which way next?
<![CDATA[China and South Korea provide just two of several examples of nations with formerly large appetites for imported ferrous scrap that are now finding more material within their own borders. In a presentation at the 2016 Recycling Confex Middle East, which took place in Dubai, United Arab Emirates, in early December, Ved Prakash of Belgium-based Gemini Corporation remarked that the volume of scrap that South Korea imports annually fell by 40% between 2012 and 2015. South Korea, said Prakash, is not alone in its reduced appetite for imported scrap. The result of such trends is that cross-border ferrous scrap trading has declined from a peak of 105.6 million tonnes in 2011 to fewer than 84 million tonnes in 2015. Prakash indicated 2016 could provide a slight rebound to scrap traders, with a potential 90 million tonnes being traded by year’s end. Despite the slight rebound in 2016, Prakash said, “Markets are maturing [and] more countries are becoming self-sufficient” in terms of ferrous scrap. He said that at their peak, South Korea, Taiwan and India required a combined 16 million tonnes of ferrous scrap imports and that it will be “difficult to replace this 16 million tonnes.” …