2 December 2022 – Scrap prices jumped yesterday following the EU ENVI decision on waste shipment regulation. Earlier, another country had already closed its export market for scrap. New anti-dumping measures were imposed on cold-rolled stainless steel products.
Scrap availability further restricted
The global run on ferrous and non-ferrous scrap continues. Already on Wednesday, South Africa had confirmed its intention to introduce an export ban on metal scrap as soon as possible. Yesterday, after massive lobbying by steel producers, the European ENVI Committee also endorsed a ban on ferrous and non-ferrous waste exports to non-OECD countries.
The reaction of scrap values was correspondingly strong, with a plus of up to 9%.
Supporters of the export ban drop their masks
With the ENVI decision, the supporters of the European waste export ban are also dropping their masks with regard to the true motives behind the demands for corresponding adjustments in the waste shipment regulation. After all, it was never about maintaining or raising social or environmental standards.
No more free ETS certificates without scrap
In the end, the only thing that matters is to keep a raw material in the EU, without which producers will not be able to meet the European Union’s benchmark standards for the allocation of free ETS certificates. Because green hydrogen and cleanly produced Direct Reduced Iron (DRI), which are needed for the Green Transformation, are only available in homeopathic quantities – in the EU, but also worldwide. And this will not change in the next ten to twenty years.
Is trouble now looming with India and Turkey?
It remains to be seen how non-OECD countries (India, Egypt, Pakistan or Bangladesh) as important ferrous waste buyers will react. But also Turkey, which European steel producers’ associations in particular are keen to exclude from the list of permitted OECD countries. After all, Turkey is by far the biggest buyer of steel scrap from the EU.
New stainless steel anti-dumping measure
Thailand reports that the government has imposed a new anti-dumping measure on stainless steel cold rolled against imports from Malaysia and Indonesia. The imposition of new market protection measures also further restricts availability on world markets in most cases. How this new measure will play out remains to be seen. We will of course continue to keep an eye on this issue for you.
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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.