Scrap Metal Market Review 2013

Scrap Metal Market Review 2013
Last year German crude steel production, at 42.6 million tonnes, only fell 16,000 tonnes
2012 production level. Whereas EAF crude steel production sank by almost 2.5%, crude steel production
in the integrated mills increased by 1%. In comparison to 2012, the fall in production in the EAF
caused a corresponding reduction in
smaller decrease in total scrap consumption, from 19.7 to 19.4 million tonnes, is attributed to the
integrated mills increasing their scrap usage by 5kg per tonne of produced steel, whereas th
plants reduced their usage by 7kg per tonne.
Scrap deliveries originating from domestic scrap dropped by 1.1 million tonnes (4.8%) during 2013. The
main reason for this was a drop in exports of almost 900,000 tonnes during the year. However,
secondary raw material scrap was able to strengthen its position in crude steel production with levels of
usage continuing to be over 45%.
Foundries purchased approximately 256,000 tonnes less scrap and according to first estimates, from
bdguss (German Foundry Association), production in iron, steel and malleable cast iron foundries has
also dropped by 7.1% from 5.8 to 5.4 million tonnes.
Table 1: German Scrap Balance i
German Scrap Balance
Steel Scrap Shipment from Dealers
Purchase by mills
Purchase by foundries*
Scrap Shipment Export
Shipment Total
./. Import
Shipment from Local Supply
Production
Crude Steel Total
BOF
EAF
Proportion of EAF in %
Iron, Steel and Malleable Castings*
Scrap Consumption
Crude Steel Total**
Scrap acounted for a share of Crude Steel
Oxygen Steel
(kg per Tonne of Production)
Electrical Steel
(kg per Tonne of Production)
Iron, Steel and Malleable Castings*
Sources: Stat. Bundesamt, Außenhandelsstatistik, Euwid, WV
**Details WV-Stahl, Düsseldorf, February 2014, Eurofer, bvse
Trade 2012 finally, 2013 preliminar
Falling prices, declining supply
Whereas consumption in German steel mills stayed relatively constant, compared to 2012, prices
showed a clear downward trend (Chart 1
4.9% from the end of 2011 to the end of 2012 followed by 8.3 percent to the end of 2013; during these
periods fixed costs, such as electricity and fuel, increased putting pressure on profit margins.
Scrap Metal Market Review 2013
Last year German crude steel production, at 42.6 million tonnes, only fell 16,000 tonnes
2012 production level. Whereas EAF crude steel production sank by almost 2.5%, crude steel production
in the integrated mills increased by 1%. In comparison to 2012, the fall in production in the EAF
caused a corresponding reduction in the quantity of consumed scrap of 462,000 tonnes. The somewhat
smaller decrease in total scrap consumption, from 19.7 to 19.4 million tonnes, is attributed to the
integrated mills increasing their scrap usage by 5kg per tonne of produced steel, whereas th
plants reduced their usage by 7kg per tonne.
Scrap deliveries originating from domestic scrap dropped by 1.1 million tonnes (4.8%) during 2013. The
main reason for this was a drop in exports of almost 900,000 tonnes during the year. However,
y raw material scrap was able to strengthen its position in crude steel production with levels of
Foundries purchased approximately 256,000 tonnes less scrap and according to first estimates, from
ociation), production in iron, steel and malleable cast iron foundries has
also dropped by 7.1% from 5.8 to 5.4 million tonnes.
German Scrap Balance in 000 t
2013 2012 ∆ in %
Steel Scrap Shipment from Dealers
15,038 15,187
3,340 3,596
8,922 9,810
27,300 28,593
5,587 5,793
Shipment from Local Supply 21,713 22,800
42,645 42,661
29,187 28,871
13,458 13,790
↓31.6 ↑ 32.3
Iron, Steel and Malleable Castings* 4,111 4,283
19,439 19,739
Scrap acounted for a share of Crude Steel ↓ 45.6 ↑ 46.3
(kg per Tonne of Production)
5,283
181
5,080
176
(kg per Tonne of Production)
14,135
1,050
14,597
1,057
Iron, Steel and Malleable Castings* 5,390 5,800
Sources: Stat. Bundesamt, Außenhandelsstatistik, Euwid, WV-Stahl, *Details bdguss, Numbers 2013 preliminarily,
Stahl, Düsseldorf, February 2014, Eurofer, bvse-calculation, stand march 2014, Numbers Foreign
Trade 2012 finally, 2013 preliminarily
Whereas consumption in German steel mills stayed relatively constant, compared to 2012, prices
Chart 1). For example, the average price of E3 grade steel sank by
he end of 2012 followed by 8.3 percent to the end of 2013; during these
periods fixed costs, such as electricity and fuel, increased putting pressure on profit margins.
Last year German crude steel production, at 42.6 million tonnes, only fell 16,000 tonnes short of the
2012 production level. Whereas EAF crude steel production sank by almost 2.5%, crude steel production
in the integrated mills increased by 1%. In comparison to 2012, the fall in production in the EAF-plants
the quantity of consumed scrap of 462,000 tonnes. The somewhat
smaller decrease in total scrap consumption, from 19.7 to 19.4 million tonnes, is attributed to the
integrated mills increasing their scrap usage by 5kg per tonne of produced steel, whereas the EAF-
Scrap deliveries originating from domestic scrap dropped by 1.1 million tonnes (4.8%) during 2013. The
main reason for this was a drop in exports of almost 900,000 tonnes during the year. However,
y raw material scrap was able to strengthen its position in crude steel production with levels of
Foundries purchased approximately 256,000 tonnes less scrap and according to first estimates, from
ociation), production in iron, steel and malleable cast iron foundries has
∆ in %
↓ 1.0
↓ 7.1
↓ 9.1
↓ 4.5
↓ 3.6
↓ 4.8
↑ 0.0
↑ 1.1
↓ 2.4
-4.0
↓ 1.5
↓ 7.1
Stahl, *Details bdguss, Numbers 2013 preliminarily,
calculation, stand march 2014, Numbers Foreign
Whereas consumption in German steel mills stayed relatively constant, compared to 2012, prices
). For example, the average price of E3 grade steel sank by
he end of 2012 followed by 8.3 percent to the end of 2013; during these
periods fixed costs, such as electricity and fuel, increased putting pressure on profit margins.
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