Global scrap trade declines

In the first half of 2023, global scrap trade (excluding trade within the EU) fell by 8% to 27 million tons, compared to the same period in 2022. 

In the first half of the year, global steel production fell by 1.1% to 943.9 million tons. In particular, this indicator fell by 10.9% in the EU and by 3.5% in North America between January and June. The demand for scrap in South Asia has been impacted by the depreciation of the currency, the decline in foreign reserves, and inflation. However, as demand fell in Bangladesh, Pakistan, and East Asia, more of this raw material began to flow into India.

The second half of the year is likely to see an increase in the global scrap trade. Due to decreased production and potential domestic demand support from economic stimulus, Chinese steel exports may decline. The second half of the year is likely to see declines in energy prices, interest rates, and inflation, which will increase demand for and production of steel. As a result, there might be a rise in the demand for scrap.