Eastern Siberia scrap and longs market research
In 2014, Metal Expert Consulting has conducted the research to evaluate the perspectives of building mini-mill in the region.
Due to reduction of scrap generation and decrease in scrap industry profitability, scrap collection has been going down in the region (for instance, from 1.3 million t in 2011 to 1 million t in 2013).
Russian scrap market faces tight competition with three largest players accounting for 35% of total scrap collection (as of 2013), top five – for about 50%. Meanwhile, none of large collectors in the region is affiliated with any steelmakers.
There are no large scrap consumers in the region either. So, the regional scrap market faces an excess of supply. Over 75% of local scrap is shipped beyond the region, some 10% is exported.
Amurmetal and ZSMK are key scrap buyers in the region jointly accounting for 81% of scrap purchases (as of 2013). South Korea and China are the main importers of scrap from Eastern Siberia.
The region’s longs consumption amounted to 450,000-460,000 t per year in 2012-2013, up from pre-crisis level.
Construction steel products account for 80-85% of total consumption.
In 2010-2013, consumption of most steel products increased by the average of 12-15% per year. The biggest growth was recorded in wire rod and beam segments, while the decrease was seen only in the segment for bars.
In 2011-2013, ZSMK managed to substantially enhance its share in the region’s market. In 2013, the company increased finished longs supply 1.8-fold from the pre-crisis period to 273,000 t, accounting for 60% of region’s consumption.
Trading companies account for about 70% of longs purchases in the region, their share keeps increasing.
|© 2004-2018 Metal Expert LLC, all rights reserved||Back to top|