The outlook for the global steel scrap market over the rest of this year is mostly optimistic, Bureau of International Recycling ferrous division member Tom Bird said at the association's conference in Hong Kong Tuesday.
"Demand should stay healthy and there is good balance," he said, adding it would be necessary to watch for further signs of Chinese scrap exports in the coming weeks.
Indian and subcontinental countries would be most affected by this, as sentiment has been disrupted by offers of scrap from China at well below expected levels. This comes despite the large tariff levied against ferrous scrap exports by the Chinese government.
The US domestic scrap market is set to retain underlying strength along with good demand, he said.
Export markets were seen as the only negative, with some drag stopping increases.
The European outlook is similar, with prices expected to stay in a range around current pricing, though a slowdown could be in the offing from Turkey due to Ramadan, he added.
Exports could also soften the market in Europe, with Turkey, Spain and Italy suffering from a lack of end-buyers for finished products.
Sentiment on the sidelines of the event was less positive for the future of the market.
The Turkish deep-sea market could see a $10/mt softening, according to several representatives of a Scandinavian scrapyard.
A European scrap merchant agreed, although he dismissed the idea of the softening being led by Ramadan in Turkey, as the last few years had seen little change to scrap flow during the holiday.
