SteelMint Events

Author: SteelMintEvents

  • How is the steel industry situation in Ukraine?

    How is the steel industry situation in Ukraine?

    Key Points of Discussion:

    • Impact of war on steel capacities, production & exports
    • Challenges being faced
    • Market outlook for the rest of the year
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  • BIR World Recycling Convention – Dubai

    BIR World Recycling Convention – Dubai

    BIR is returning to Dubai for our World Recycling Convention (Round-Table Sessions), (16) 17-18 October 2022!

    Tapping into the vast business opportunities of the Middle East was one of the many reasons why BIR decided to go back to the coveted conference destination of Dubai. This city never fails to impress and surprise, with constant innovation and superlatives while offering exquisite convention venues with all the amenities that make a business stay feel like a holiday.

    Registration is now open! Register today to access the best rates & hotel availability.

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  • SteelMint Reports: South Asia, world’s largest ship scrapping yard, has wind in its sails

    SteelMint Reports: South Asia, world’s largest ship scrapping yard, has wind in its sails

    The global ship-breaking or ship recycling industry has witnessed a major shift in recent years owing to environment concerns. On one hand, ship-breaking is a green process wherein a ship at the end of its life cycle is dismantled for further re-use. On the other hand, it is a complex process of dismantling that includes issues like workers’ safety and health aspects and further challenges to the environment.

    However, the ship recycling market is gaining momentum annually. A total of 761 ships were broken worldwide in CY2021 against 631 in CY2020, out of which 583 were sold to the beaches in South Asia – the world’s largest ship recycling hub in 2021.

    There has been a noticeable improvement in ship-breaking volumes in 2021. Lockdown restrictions had pulled down import volumes in 2020. Diversion of oxygen for medical purposes also impacted volumes.

    Ships can be classified into six broad categories like general cargo, bulk carriers, oils tankers, passengers ships, drill and war ships. The approximate age or lifespan of a ship is 25-30 years.

    South Asia recycling market

    South Asia has been referred to as the “World’s ship scrapping yard”, with India, Bangladesh and Pakistan collectively dismantling and processing scrapped vessels globally. India, Pakistan and Bangladesh together accounted over 80% share of the global ship recycling market in 2021.

    • India: India, with its natural geographical advantage, recycled 210 ships and demolished 1,519,871 LDT in 2021 as against 203 ships, amounting to 1,757,983 LDT, in the previous year. Similarly, the country demolished 770,000 LDT in H1CY2022 at Alang Port.
    • Bangladesh: Bangladesh recycled 254 ships amounting to 2,630,893 LDT in 2021 compared to 1,843,442 LDT and 144 recycled ships in 2020. In H1CY2022 the country demolished 760,000 LDT of ships at Chittagong Port.
    • Pakistan: Pakistani players recycled 119 ships with a collective tonnage of 1,000,516 LDT in 2021 compared to 778,256 LDT and 99 recycled ships in 2020. In H1CY22 the country demolished 380,000 LDT of ships at Gadani Port.

    Price trends

    • India’s ship-breaking import prices jumped to $525/LDT in 2021 as compared to $360/LDT in 2020, significantly up by $165/LDT.
    • Pakistan’s ship-breaking import prices surged to $544/LDT in 2021 as against $364/LDT in 2020, significantly up by $180/LDT.
    • Likewise, Bangladesh’s ship-breaking import prices rose to $552/LDT in 2021 in contrast to $361/LDT in 2020, significantly up by $191/LDT.

    The average material recovery depends upon the type of material extracted from the ship. Re-rollable ferrous scrap recovery is 67%, meltable ferrous scrap around 12% whereas cast iron is 4% and non-ferrous scrap, 1%.

    HKC and green recycling

    Considering the hazardous nature of the industry, one key obstacle is that there is no fixed legislation to follow. The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships was adopted at a diplomatic conference held in Hong Kong in 2009.

    The convention was adopted to ensure that ships, when being recycled after reaching the end of their functioning lives, do not create any unnecessary hazards to human health, safety and to the environment.

    South Asian countries have decided to ratify and implement the Hong Kong Convention. Towards that, the relevant ministries have drafted regulations to make the ship recycling industry safe for their workers and the environment by implementing the Hong Kong Convention (HKC).

    Outlook

    Amid the current scenario, availability of vessels is limited and prices remain steady due to sluggish economies and low steel demand from end-user industries. As a result, market sentiments are gloomy and buyers cautious.

    But ship-breaking volumes may increase in the short term due to favourable weather conditions which will support increased construction activities. It may be mentioned, a major portion of ship-recycled scrap finds its way into the construction sector.

    SteelMint Events will be hosting the 3rd Steel & Raw Material Conference, Emerging Bangladesh, on 20-21 September, 2022 at Hotel Radisson Blu, Chittagong, Bangladesh. The conference will explore key issues like the country’s steel production and demand outlook, global scrap trade flow changes, especially post-the Russia-Ukraine war, the ship recycling scenario, key emerging sectors, price trends and a lot more.

  • SteelMint analysis: An overview of Turkiye’s steel sector

    SteelMint analysis: An overview of Turkiye’s steel sector

    Turkiye is one of the largest ferrous scrap importing countries in the world. Other key industries that contribute to the country’s economy include textiles, chemicals, cement, motor vehicles and construction. The country provides certain leverages for international trading and is a key destination for trade between Europe and Asia.

    Turkiye produced 40.4 million tonnes (mnt) of crude steel in CY 2021 out of which 11.47 mnt i.e. 28.4% was churned out from oxygen furnace (BOF) and 28.93 mnt i.e. 71.6% was produced from electric arc furnace (EAF), as per World Steel Association (WSA) report. Higher crude steel output resulted in increased scrap consumption.

    • Pig iron imports up: Turkiye’s pig iron imports stood at 1.2 mnt in 2021 vis-à-vis 1.14 mnt in the corresponding period last year (CPLY), up slightly by 5.3% y-o-y. The country’s entire consumption in 2021 was 11.6 mnt.
    • Steel exports see 15% rise: Total finished steel exports from Turkiye jumped 15% to 19.2 mnt in 2021 compared to 16.75 mnt in 2020.

    Also, according to the Turkish Automotive Manufacturers’ Association (OSD), total car production in CY21 stood at 1,276,140 units wherein exports amounted to 937,005 units, marking an increase of 2% as compared to 916,538 units in CY20.

    Turkiye’s scrap market in 2021

    • Ferrous scrap import shipments increase: Turkiye recorded ferrous scrap imports at 24.37 mnt in 2021, an increase of 10% against 22.18 mnt in 2020, as per SteelMint data. USA accounted for the largest share of 16% in total exports to Turkiye in CY21 followed by the Netherlands at 13% share and the UK at 10%.
      If compared on m-o-m basis, the country’s imports rose by 22% to 2.49 mnt in December 2021 vis-a-vis 2.04 mnt in November. Notably, import volumes in December were the highest in 2021.

    Reasons behind the rise in imports–

    • Imported ferrous scrap demand in the Turkish market rebounded in CY21 as mills remained active in booking deep-sea scrap cargoes throughout the year as buying interest picked up slightly.
    • There was an improvement in demand of billets and long steel products in the Turkish market. Market participants believe that strong demand for billets kept scrap bookings active.
    • Freight rates from the US coast to Turkey fell which eased scrap prices, boosting buying interest.

    Imported scrap prices rise in CY21

    SteelMint’s assessment of US-origin HMS 1&2 (80:20) stood at $459/t CFR Turkey in January-December 2021 against $291/t CFR in January-December 2020, up by around $168/t CFR Turkey y-o-y.

    Prices surged as Lira eroded against the dollar to settle at TRY 13.31 in 2021 which was at 7.37 towards the end of 2020. The volatile market situation and a sharp fluctuation in the national currency put pressure on steel mills to lower their local scrap prices in 2021. Also, sluggish domestic and overseas demand, especially from China amid the winter months kept Turkish market under pressure.

    Hassles in scrap market:

    • Suspension of operations at mills on higher electricity costs: EAF steelmakers announced suspension of crude steel production in the first few months amid increased electricity costs. As a consequence, buying activities in the regional market decreased. The heavy snowfall also caused logistical problems in the market.
    • Russia hikes scrap export duty: Russia approved an almost three-fold hike in the export duty on ferrous scrap, effective 1 May’22, to support domestic raw material availability and control the rise in steel prices. The minimum duty on exports of ferrous metals outside the Eurasian Economic Union was increased from EUR 100/t to EUR 290/t.
    • Government declares surge in energy tariffs: The start of summer season was accompanied by a sharp rise in energy tariffs. Economic factors and the global hike in energy costs are among the reasons behind it. The Turkish Energy Market Regulatory Authority increased prices depending on the customer category.
    • Rising billet imports: Also, the country’s billet imports in H1CY22 increased sharply as its prices were almost at par with those of imported scrap. Russia was the top exporter with 75% share followed by Ukraine with 5%.

    Way forward:

    The input costs of Turkish steel mills are anticipated to increase further after the country’s Energy Market Regulatory Authority elevated electricity prices for industrial use by 50% on 31 August 2022. State gas distributor Botas also raised natural gas prices for industrial use by 50.8% from September 2022. This may lead in Turkish steel mills opting for production cuts or lift prices despite the sluggish market as their margins are lower.

    SteelMint Events will be hosting the 3rd Steel & Raw Material Conference, Emerging Bangladesh, on 20-21 September, 2022 at Hotel Radisson Blu, Chittagong, Bangladesh. The conference will explore key issues like the country’s steel production and demand outlook, global scrap trade flow changes, especially post-the Russia-Ukraine war, the ship recycling scenario, key emerging sectors, price trends and a lot more.

  • Bangladesh’s sponge iron imports from India to rise further on expanding steel melting capacities

    Bangladesh’s sponge iron imports from India to rise further on expanding steel melting capacities

    Sponge iron imports by Bangladesh from India stood at 283,000 tonnes (t) in FY’22 (April’21-March’22). Although Bangladesh’s imports increased sharply from FY’21, volumes were still lower compared to the previous couple of fiscals. Imports, however, are expected to edge up in the coming time on account of rising steel melting capacities in Bangladesh and infrastructure projects in the pipeline.

    Notably, Bangladesh’s financial year starts on 1 July and ends on 30 June. The country’s sponge iron imports were recorded at a meagre 221,756 t in the Indian fiscal year 2021 (FY’21) due to the impact of the COVID-19 pandemic. Meanwhile in the first six months (January-July) of CY’22 the country imported 443,092 t of sponge iron from India, indicating a surge in demand. However, due to LC issues and the liquidity crisis buyers booked limited material during June-July.

    Bangladesh accounts for 41% of Indian sponge exports: Bangladesh has a share of 41% in India’s total sponge exports, with export volumes in FY’22 being recorded at 690,287 t. While Nepal accounts for the largest share – 53% – of India’s exports, Bhutan holds a share of 5%.

    Bangladesh’s sponge import prices: Imported sponge iron prices to Bangladesh stood at an average level of $494/t CNF Chittagong in FY’22.

    Market updates

    • Chittagong – home to steel mills: The Chittagong region is the hub of the largest mills in the country, including the top four steelmakers and nine steel companies in all. Mills in the region operate 32 melting furnaces (29 IFs and three EAFs) with a total crude steel capacity of 4.67 mnt (including GPH Ispat’s Quantum EAF).
    • IF mills in Dhaka:  On the other hand, Dhaka has 31 mills in all which are relatively small in size, operating 61 induction furnaces (IF) with a total melting capacity of around 3.3 mnt per annum, while another four induction furnaces are operated by steelmakers in the Comilla region.
    • Furnace sponge-scrap ratio: The ratio of sponge iron in the steelmaking feed depends upon scrap quality. However, the percentage mix of sponge iron in the furnace hovers around 5%.

    As many steel manufacturers in Bangladesh are planning to expand their steel capacities, DRI imports from India are poised to rise further.

    To know more on Bangladesh’s sponge iron imports, book your seat at 3rd Steel & Raw Material Conference, Emerging Bangladesh on 20-21 September, 2022 at Hotel Radisson Blu, Chittagong, Bangladesh, and get a chance to hear renowned industry participants from across the globe on “How are Indian mills managing feed mix of Scrap/DRI/Pig Iron in Induction Furnaces (IF)”.