According to a report published by the Bureau of International Recycling (BIR), the imposition by the US of 25 percent tariffs on steel and aluminum imports has added another layer of uncertainty to the already complex market. BIR stated that these tariffs could further impact trade dynamics and impede production of green steel by disrupting international supply chains.
The tariffs could cause countries that previously exported steel to the US to seek out alternative markets, thereby affecting the availability of recycled ferrous metals in other regions. Finished steel previously earmarked for the US market could well be diverted to already-saturated markets elsewhere, thus further depressing prices and reducing production, which will in turn create less demand for recycled steel and push prices lower, BIR pointed out.
Meanwhile, looking at the other market developments, there has been a debate in South Africa over the country’s recycled steel export tax: domestic electric steel producers are advocating its retention to ensure availability of recycled steel for local production, whereas ArcelorMittal South Africa is pushing for its removal.