17 March 2023 – The European Commission presented its revised Critical Raw Materials Regulation on Thursday. At first glance, ferrous scrap does not appear to have made it onto the list – a setback for the EU steelmakers’ demand. Scrap markets trend higher due to tight availability in March 2023. And markets show positive after ECB interest rate decision. More rating agency raises metals and mining outlook.
Ferrous scrap not a critical raw material in the EU after all?
The European Commission (EC) presented its proposal for the new EU Critical Raw Materials Regulation on Thursday. It is striking that the EU steel producers and their lobby association EUROFER seem to have failed in their first attempt with their demand for a classification of steel and stainless steel scrap as critical raw material.
Ferrous scrap does not appear among the 16 raw material groups mentioned, even though the EC draft explicitly calls for the recycling and reuse of scrap containing these raw materials.
Are there some backdoors hidden in the drafts?
Due to the multitude of published data, texts and cross-references, it is not yet clear whether a backdoor is hidden somewhere, consciously or unconsciously, in order to declare ferrous scrap as a critical raw material. Should we find any indications of this in the near future, we will be happy to inform you. If you notice anything, we look forward to receiving your information in return.
Scrap market in upward trend
High-quality and grade-pure scrap is one of the scarcer commodities and one of the most important raw materials for the steel and stainless steel industry.
From the United States, recycling companies currently report that scrap prices have increased again in March 2023. Among other things, this is due to tight availability.
In Turkey, following the severe earthquake at the beginning of February and the Turkish government’s announcement of a rapid reconstruction program, demand for scrap as a raw material for EAF production there is also expected to increase further.
And also from China it is reported that the availability of e.g. stainless steel scrap is currently limited.
Sentiment on EU markets clearly more positive
After the decision of the European Central Bank ECB to raise interest rates by 0.5% points, stock markets in Europe have reacted positively. In the United States, the markets have also picked up and closed positively. The same can be seen on the Asian stock markets.
Fitch Ratings raises metals and mining outlook
After we had already pointed out several times that the commodities market would develop positively in 2023, Fitch Ratings, in addition to Moody’s Investors Service, has now also raised its outlook for metals and mining this week.
Nickel and copper rated significantly higher
Fitch revised its assumptions for global metals and mining prices, raising its short- and medium-term outlooks for copper, iron ore, coking coal, gold, zinc, aluminum and nickel. For copper and nickel in particular, Fitch expects prices to be at least 10% higher than previously assumed.
Fitch Ratings raises metals and mining outlook
After we had already pointed out several times that the commodities market would develop positively in 2023, Fitch Ratings, in addition to Moody’s Investors Service, has now also raised its outlook for metals and mining this week.
Nickel and copper rated significantly higher
Fitch revised its assumptions for global metals and mining prices, raising its short- and medium-term outlooks for copper, iron ore, coking coal, gold, zinc, aluminum and nickel. For copper and nickel in particular, Fitch expects prices to be at least 10% higher than previously assumed.
Latest news
- EU ferrochrome benchmark prices for Q2 2023 jumping significantly
- Indian stainless steel group with more drastic problems?
- China: Consumption clearly on the rise
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
