Issue 06, 2024 - This week's editorial: Tight supply set to support scrap prices despite weak steel demand in H1 2024

Panelists at last week’s Kallanish steel scrap 2024 conference in Istanbul agreed that scrap prices would remain stable in the first half of 2024 due to the unfavourable economic fundamentals in China, Europe and worldwide, as well as conflict in the Middle East and Ukraine. Tight scrap supply is nevertheless balancing out the weakness of demand, preventing prices from dropping further.

Major scrap importers in Egypt and Turkey will continue to suffer in H1 due to high interest rates, thereby limiting demand for steel and scrap.

The lack of supply of scrap is evident, for example, in Europe. A lack of steel demand in Europe during 2023 has resulted in lower steel production, leading to low internal scrap generation. Moreover, demolition, construction, and manufacturing declined. The result is tight scrap supply and elevated prices, said Alain Eeckman, commercial director of Casier Recycling.

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