According to the International Bureau of Recycling (BIR) Q2 2022 report, the energy crisis and economic downturn are deeply affecting the global scrap market. Many industries have reduced production; this led to a decrease in the volume of scrap collection and a decrease in scrap demand.
According to BIR, the United States was the largest exporter of scrap in the first half of 2022. American companies exported 8,874 million tons of scrap, down 5.6% year-on-year.
US scrap prices have been falling continuously since June of this year. In five months, the cost of the material on the local market has dropped by about a third. However, the market is expected to stabilize in the winter.
While EU countries reduced their scrap exports by 23.9% year-on-year to 8.515 million tons in the first half of the year, European traders increased their supplies to South Asian countries in the third quarter.
Among the scrap importers, Turkey took the first place in the January-June 2022 period by a wide margin; compared to the previous year, there was a 3% decrease with 12.5 million tons.
South Korea ranks second with 2.722 million tons, with an increase of 29.1%; India ranked third with 2,673 million tons, an increase of 0.3%. However, countries such as Taiwan and Vietnam have reduced their foreign purchases.
BIR also noted that apparent scrap demand in China has dropped by 13.8% compared to the first half of 2021.
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