Steel Scrap - BIR

World Steel Recycling in Figures — 1

Steel Scrapa raw material for steelmakingWorld Steel Recycling in Figures 2005 – 2009

2 — World Steel Recycling in Figures


contentS

Foreword 2

Executive Summary 4

Graphs & Tables 7

Crude Steel Production 7

Total Metallics for Steelmaking 8

Steel Scrap for Steelmaking 8

Steel Scrap Trade 11

Main Steel Scrap Exporters (Net Exporters) 12

Main Export Flows 13

Main Steel Scrap Importers 15

Price Curve 16

Glossary 19


World production and capacity utilization figures for the steel industry improved again in the early months of this year, despite the disastrous effects on the steel and steel recycling markets brought about by the economic and financial crisis.

World production and capacity utilization figures for the steel industry improved again in the early months of this year, despite the disastrous effects on the steel and steel recycling markets brought about by the economic and financial crisis.

However, we should be aware of the fact that the upturn is not based solely on an actual increase in demand for steel but also on a restocking. the World Steel association and eUroFer have even suggested that it will take several more years in some areas of the world before they return to a pre-crisis level.

In order to make a more accurate appraisal of market developments, we aim to continue improving the steel scrap statistics at our disposal. this year for the first time, the BIr Ferrous Division is publishing an overview of world figures for the years 2005 to 2009.

as we are still dependent on estimates for many areas of the world, we have, in collaboration with experts from the German Steel Federation (WV Stahl), produced a calculation model for the entire use of metallics in steelmaking.

ForeWorD


In future, the BIr Ferrous Division plans to publish such a report every year. In so doing, we will also continue our endeavours to improve data acquisition and analysis. a further factor to be considered in this connection is worldwide scrap use in iron and steel foundries, which we have estimated to be between 50 and 60 million tonnes a year.

I would like to extend special thanks to rolf Willeke, who compiled, prepared and evaluated all the figures. In the divisional board meeting in Istanbul, rolf Willeke accepted our wish to update these world statistics every 6 months.

We hope that our report on world steel recycling in figures will be useful in your daily business operations.

Istanbul, 31 May 2010

Christian Rubachpresident of the BIr Ferrous Division


The figures for 2009 show that the steel recycling industry was seriously affected by the global economic and financial crisis.

Steel production worldwide dropped in total by 7.9% to 1.224 billion tonnes; according to our calculations, the use of steel scrap for world steel production fell 13.2% to 460 million tonnes. one of the reasons for this downturn is developments among the individual steel manufacturing processes: oxygen steel production with scrap use rates of, as a rule, between 100 and 200 kg/t dropped by only 4.2% whereas scrap-intensive electric arc furnace steel production decreased by 15.9%.

the development of steel production in china is attracting particular attention. In fact, china was able to increase its steel production (with a share of electric steel of around 9%) by as much as 13.5% to 568 million tonnes. consequently, 47% of world steel production is attributable to china. this development has contributed substantially to the fact that the ratio of steel scrap use to crude steel production worldwide has diminished since 2005 from 40.4% to 37.6%.

Unfortunately, there are no reliable figures available yet from china on steel scrap demand. at the International recycling conference held in Hangzhou in china from 16 to 17 april 2010, a steel scrap use estimate of 83 million tonnes was reported for 2009. this would mean that scrap use per tonne of steel produced dropped from 227 kg/t to 146 kg/t in the period from 2000 to 2009. according to other information sources at the International conference, the annual steel scrap requirements of the chinese steel industry could rise to 200 million tonnes.

another reason worth noting for the sharp decline in steel scrap use in 2009 is that areas such as the USa (with an electric steel share of around 60%) and the european Union (with a share of 40% in 2009) recorded sharp drops in production of 36.3% and 29.9%, respectively.

execUtIVe SUMMary


Worldwide results for scrap steel use would have been worse if not for India, which was able to increase its steel production by 4.2% to 60.2 million tonnes. the electric steel share in India is around 60%.

an even higher electric steel share of 75% is recorded in turkey, the largest steel scrap importer in the world. according to the latest figures received from the turkish Iron and Steel producers association, this high share has resulted in scrap contributing over 80% of the material used in turkish steel production in the last five years.

taking into account the steelworks’ own arisings, so-called circulating scrap, our calculation model has shown that scrap purchases by steelworks worldwide dropped in 2009 by 13.4% to 290 million tonnes, of which 33% is attributable to the supply of new steel scrap (process scrap) and 67% to the supply of old steel scrap (capital scrap).

this shows that, since steelworks are demanding higher quality, which is also applicable to deep-sea business, as is the trend in India or china, quality-assured processing of scrap is becoming more and more important. this means that steelmakers and steel suppliers need to form closer relationships.

also worthy of note is the development in 2009 of the world export trade in steel scrap. the USa continues to be the largest steel scrap exporter with 22.439 million tonnes (+ 3.4% compared with 2008). In spite of the 10.2% drop to 15.6 million tonnes, turkey held its position as the world’s leading importer of steel scrap.


the positive export results, e. g. of the USa and also of the european Union (+ 22.2% to 15.6 million tonnes) are due in particular to lower domestic scrap use and the strong increase in shipments to china and to India. at the same time, steel scrap imports by china reached an all-time high with an increase of 281.4% to 13.7 million tonnes.

In contrast, the importance of russia as a steel scrap supplier has continued to decline. exports in 2009 reached only 1.2 million tonnes (- 76.6% compared with 2008).

Steel scrap prices (as illustrated in the export prices of the USa and the eU) remain volatile. However, this also emphasizes that, as a raw material, steel scrap is an international commodity subject to world market prices.

the development of the market in 2009 highlights the necessity for free raw material markets. In spite of an even greater drop in scrap use compared to world steel production, steel scrap continues to be an extremely important raw material for the steel industry. It will also become increasingly important in steelmaking due to the ecological benefits of steel recycling such as the saving of energy and raw materials and the prevention of co2 emissions.

Rolf Willeke


world Crude steel ProduCtion (million tonnes)

world eaf ProduCtion (million tonnes)

0

300

600

900

1200

1500

2005

World Steel Production Sources: WSA/ISSB

2006 2007 2008 2009

Of which China

12471346 1329 1224

(-7.9%)

568(+13.5%)

353419

490 500

1144

0

100

200

300

400

500

2005

Sources: WSA/ISSB

2006 2007 2008 2009

365395

416 409

344(-15.9%)


total metalliCs for steelmaking in the world (million tonnes)

steel sCraP for steelmaking in the world (million tonnes)

2005 2006 2007 2008 2009 % Change 08/09

crude Steel production 1 144 1 247 1 346 1 329 1 224 -7.9

of which oxygen 748 820 901 890 853 -4.2

electric (eaF) 365 395 416 409 344 -15.9

(Share EAF of Crude Steel) in % 31.9 31.7 30.9 30.8 28.1

pig Iron 800 880 961 935 908 -2.9

(Ratio Pig Iron/Crude Steel) in % 69.9 70.6 71.4 70.4 74.4

Steel Scrap 462 500 540 530 460 -13.2

(Ratio Steel Scrap/Crude Steel) in % 40.4 40.1 40.1 39.9 37.6

DrI 57 60 67 68 63 -7.4

(Ratio DRI/Crude Steel) in % 5.0 4.8 5.0 5.1 5.1

total Metallics 1 319 1 440 1 568 1 533 1 431 -6.7

(Ratio Total Metallics/Crude Steel) in % 115.3 115.5 116.5 115.4 116.9

Sources: WSa, Midrex and own calculations by WV Stahl/BIr

2005 2006 2007 2008 2009 % Change 08/09

crude Steel production 1 144 1 247 1 346 1 329 1 224 -7.9

Steel Scrap 462 500 540 530 460 -13.2

(Share Scrap Use/ Crude Steel) in % 40.4 40.1 40.1 39.9 37.6

of which:

own arisings (circulating Scrap) 169 185 197 195 170 -12.8

(Share Own Arisings of Scrap Use) in % 36.6 37.0 36.5 36.8 37.0

purchases by Steelworks 293 315 343 335 290 -13.4

(Share Purchases of Scrap Use) in % 63.4 63.0 63.5 63.2 63.0

of which:

new Steel Scrap (process Scrap) 100 109 107 105 95 -9.5

(Share New Steel Scrap of Total Purchases) in % 34.1 34.6 31.2 31.3 32.8

old Steel Scrap (capital Scrap) 193 206 236 230 195 -15.2

(Share Old Steel Scrap of Total Purchases) in % 65.9 65.4 68.8 68.7 67.2

Sources: WSa, Midrex and own calculations by WV Stahl/BIr


steel sCraP use, worldwide

world Crude steel ProduCtion, steel sCraP use and PurChases (million tonnes)

0

600

400

200

800

1000

1200

1400

2005

Crude Steel Production Sources: WSA and own calculations by WV Stahl/BIR

2006 2007 2008 2009

Steel Scrap PurchasesSteel Scrap Use

462 500 540 530

293 315 343 335

11441247

1346 1329 1224(-7.9%)

460(-13.2%)

290(-13.4%)

0

100

200

300

400

600

500

20

25

30

35

45

Million Tonnes %

40

Source: WV Stahl

2009200820072006200520042003200220012000199919981997

Ratio Scrap Use / Crude Steel Production

Total Steel Scrap Use Own Arisings

New Scrap

Old Scrap

Purchased Scrap

Old Scrap


us Crude steel ProduCtion and steel sCraP use (million tonnes)

eu Crude steel ProduCtion and steel sCraP use (million tonnes)

0

40

70

80

90

100

50

60

30

20

10

2005

Crude Steel Production Sources: WSA/ISRI

2006 2007 2008 2009

Steel Scrap Use

98.6 98.1

91.4

58.2(-36.6%)

48(-27.3%)

66 64 64 66

94.9

0

100

160

180

200

220

120

140

80

60

40

20

2005

Crude Steel Production Sources: WSA/EUROFER

2006 2007 2008 2009

Steel Scrap Use

207 209.7198

139.8(-29.9%)

80.9(-27.3%)

105.7115.3 116.7 111.3

195.7


turkey Crude steel ProduCtion and steel sCraP use (million tonnes)

world trade in steel sCraP (million tonnes)

0

10

15

20

25

30

5

2005

Crude Steel Production Sources: WSA/IDCUD* Estimated

2006 2007 2008 2009

Steel Scrap Use

23.3

25.8 26.8 25.3(-5.6%)

20.3*(-11.4%)

17.6

20.2

22.6 22.921

0

20

40

60

80

120

100

2005

Sources: ISSB

2006 2007 2008 2009

95.1 97.4 99.7105.1

94.9


main steel sCraP exPorters (million tonnes)

2005 2006 2007 2008 2009 % Change 08/09

USa 13 001 13 978 16 642 21 712 22 439 +3.4

eU 9 243 10 083 10 566 12 799 15 636 +22.2

Japan 7 576 7 654 6 449 5 344 9 398 +75.9

russia 12 653 9 797 7 855 5 128 1 202 -76.6

Sources: official trade Statistics/ WV Stahl

main steel sCraP exPorters – develoPment 2005 vs. 2009 (million tonnes)

Sources: Official Trade Statistic/WV Stahl

12 653

7 576

13 001

9 243

1 202

9 398

22 439

15 636

USA JapanEU Russia

2005 2009


net steel sCraP exPorters 2009 (million tonnes)

us steel sCraP exPort 2009 (million tonnes)

0

10

15

20

25

5

USA

Steel Scrap Export Sources: Official Trade Statistic/WV Stahl

EU Japan Russia

Steel Scrap Import

3 3.27

0.19 0.09

22.4

15.6

9.4

1.2

Biggest Buyers

Source: official trade Statistic/WV Stahl

Total Export: 22.44 (+3.4%)

china: 6.21(+119.8%)

taiwan: 2.23 (-13.5%)

turkey: 3.68 (-17.9%)

India: 1.58 (+78.8%)

South Korea: 3.11 (+18.1%)

canada: 0.98 (-47.7%)


eu steel sCraP exPort 2009 (million tonnes)

JaPan steel sCraP exPort 2009 (million tonnes)

Biggest Buyers

Biggest Buyers



Total Export: 15.64 (+22.5%)

Total Export: 9.40 (+75.9%)

turkey: 7.42(+7.8%)

china: 4.98(+93.9%)

pakistan: 0.62(+62.5%)

taiwan: 0.34(+58.0%)

India: 2.01(+56.9%)

egypt: 0.51(-48.1%)

china: 1.62(+270.9%)

South Korea: 3.77(+60.0%)

Switzerland: 0.32(-39.2%)

Vietnam: 0.20(+39.6%)


russian steel sCraP exPort 2009 (million tonnes)

Biggest Buyers


Total Export: 1.20 (-76.6%)

turkey: 0.34(-82.3%)

netherlands: 0.08(+22.2%)

South Korea: 0.25(-69.7%)

France: 0.04(-24.9%)

Spain: 0.24(-71.7%)

Germany: 0.03(-54.6%)

main steel sCraP imPorters (million tonnes)

2005 2006 2007 2008 2009 % Change 08/09

turkey 13 316 15 100 17 141 17 415 15 639 -10.2

china 10 136 5 386 3 395 3 590 13 692 +281.4

South Korea 6 814 5 621 6 887 7 319 7 800 +6.6

India 4 908 3 359 3 014 4 579 5 336 +16.5

taiwan 3 422 4 459 5 418 5 539 3 912 -29.4

eU 7 905 7 294 5 142 4 809 3 270 -32.0

USa 3 836 4 814 3 692 3 571 2 986 -16.4

Sources: official trade Statistic/WV Stahl, DcUD


main steel sCraP imPorters – develoPment 2005 vs. 2009 (million tonnes)

PriCe Curve aPril 2009/2010

Sources: Official Trade Statistic/WV Stahl

3 836

7 905

3 422

4 908

13 316

10 136

6 814

2 986

3 270

5 336

3 912

7 800

15 639

13 692

South KoreaTurkey China India EUTaiwan USA

2005 2009

100

150

200

250

300

400

350

USA Export Prices (US$/GRT)

Source: Recycling International

Sep Oct Nov Dec Jan Feb Mar AprAugJulyJunMayApr100

150

200

250

300

400

350

Fob Rotterdam Export Prices (US$/t)

Sep Oct Nov Dec Jan Feb Mar AprAugJulyJunMayApr

HMS 1 Heavy Steel Scrap (1/4 Inch) HMS 80/20 Heavy Steel Scrap

210

205200

195

200

195

225

220

250

245

280

275

275

270255

250

300

295

325

320305

300

390

385

420

410

240

235 210

205

202

195

230

220

240

235

280

275

285

280 260

255

275

270

335

330

345

340

380

370

385

380

Lowest priceHighest priceFob East Coast priceFob West Coast price

GloSSary

BIR Bureau of International recycling, Brussels, Belgium

DCUD turkish Iron and Steel producers association, ankara, turkey

Eurofer european confederation of Iron and Steel Industries, Brussels, Belgium

ISRI Institute of Scrap recycling Industries, Washington, USa

ISSB Iron and Steel Statistics Bureau, london, United Kingdom

MIDREX Midrex technologies Inc., charlotte, USa

Official Trade Statistic Statistisches Bundesamt (Federal Statistical office), Germany

Recycling International International trade magazine, arnhem, the netherlands

WSA World Steel association, Brussels, Belgium

WV Stahl Wirtschaftsvereinigung Stahl, German Steel Federation, Düsseldorf, Germany

Avenue Franklin Roosevelt 241050 BrusselsBelgium

T. +32 2 627 57 70F. +32 2 627 57 73

[email protected]

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