Domestic exporters can rest assured that the United States will
remain the worlds shopping mall for scrap metal through
the end of this decade, according to attendees at
AMMs steel scrap conference in Chicago.
Turkey, the domestic
industrys largest customer, has exhibited a weaker
appetite for U.S. scrap than in previous years but will remain
a large importer of the material, according to Philip Hoffman,
vice president of ferrous trading for Turkish mill buyer
Turkeys 20-percent reduction in sourcing scrap this year
has been driven by lower melt rates, an increase in its
domestic scrap output and the ability to convert billets at a
more favorable price than melting scrap.
"In the last few years
Turkey has consistently imported about 27 percent to 29 percent
of its scrap needs from the U.S. Despite this years drop,
in the long term Turkey will remain a large importer of U.S.
scrap," Hoffman said. The addition of new steelmaking capacity
under construction will help contribute to the countrys
dependence on foreign-sourced scrap.
David Hodory, vice
president of marketing and communications at Cincinnati-based
David J. Joseph Co., agreed that Turkey will remain a large
importer of scrap through at least 2022. South Korea, another
major consumer of U.S. scrap, will also remain a large importer
for the foreseeable future, Hodory said at the conference.
China may reduce its dependence on scrap imports but is not
expected to become a competitor at least through 2020, Hodory
said. While the country may be able to meet its needs
internally it wont become a net exporter of scrap, he