8 December 2023 – British steel manufacturers see their supply of ferrous scrap under threat and are calling on the government to drastically reduce exports of scrap from the UK. And Mexico benefits from the economic strength of the United States.
- British steel giants demand: scrap export ban now!
- Mexico at an economic high: US demand gives a boost!
British steel giants demand: scrap export ban now!
Something is brewing in the UK: The steel industry is calling loudly for an export ban on up to 10 million tonnes of ferrous scrap per year. The aim: to make domestic steel production greener.
UK Steel sounds the alarm: an export ban is needed
The British steel association UK Steel, the mouthpiece of the major steel producers, is piling on the pressure. In a new report, they are calling for an EU-style scrap export ban. This is because 43 countries, which together account for more than three quarters of global crude steel capacity, have already imposed similar restrictions.
Neighbourly harmony: UK and EU on the same page
UK Steel sings in unison with EUROFER’s European neighbours. Both are vehemently in favour of stricter export rules. The culprits? Countries with lower environmental standards, they claim.
British government could give in
The signs are good that the British government will give in to the demands of its steel manufacturers – to the chagrin of the independent recycling industry, which must fear being swallowed up by the large producers, as is already happening in the EU.
Scrap: more than just rubbish
Scrap is the raw material of the future, say financial analysts. Infinitely recyclable, but quality is crucial. The importance of scrap for the production of low-CO2 steel is coming back into focus.
Headwind from the recycling industry
The independent recycling industry is fighting tooth and nail against export bans. No wonder, considering the price dumping of stainless steel scrap by EU stainless steel producers alone.
Recycling associations strike back
Recycling associations are now calling on politicians to drastically reduce the allocation of free CO2 certificates if European steel manufacturers continue to show no willingness to increase crude steel production from scrap. With just 55% scrap in steel production, the supposedly and morally green Europe lags far behind countries such as the United States and Turkey, which use more than 70% scrap to produce steel.
Mexico at an economic high: US demand gives a boost!
Consumer confidence at record high
Mexico is celebrating an economic milestone: consumer confidence rose to a sensational 47.3 points in November – the highest level since February 2019! Both the current mood and the future prospects for the financial situation of households and the Mexican economy look rosy.
Business confidence remains strong
Optimism also prevails among companies: the business confidence index remained stable at an impressive 54 points. Values this high have not been seen there for nine years!
Mexico: the new favourite of the United States?
The real turbo for Mexico’s economy? The strong demand from the USA! Thanks to nearshoring activities, Mexico is now the United States’ most important trading partner – even ahead of China and Canada. Almost 80 per cent of all Mexican exports end up in the USA.
Industry on the upswing
Industry is booming: the Purchasing Managers’ Index stood at a strong 52.5 points in November. A clear sign that Mexico’s economy is continuing to improve.
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