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Interview
Interview
Quality Quantity
Cyril Broussaud, Head of Ferrous Sales of the leading recycling specialist and scrap supplier ECORE Group, discussed Turkey’s growing demand for quality scrap and other topics with SteelOrbis Istanbul during the SteelOrbis Fall 2013 Conference & 69th IREPAS Meeting.
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ounded in 1993, the ECORE group is a recycling specialist that manages the whole recycling chain for industrial groups as well as local collectives. To date the group has enjoyed constant growth of its volumes, new site implementations and increased turnover.
How does ETS (Emissions Trading Scheme) impact your business? What are challenges European metal recyclers are faced with due to EU’s emission regulations? CB: In our view, bigger European metal recyclers like ECORE will be best placed to comply with tightening environmental regulations. ECORE has invested in the latest technologies in anticipation of regulatory changes enabling us to offer solutions to industries facing emission issues (i.e. ecofriendly transportation). In order to be compliant, companies will need to make investments, which will result in a redistribution of the market.
Do you think scrap suppliers in Europe are under higher cost pressure compared to their counterparts in the US or in the CIS because of the regulations? CB: European and US scrap suppliers share this common problem and we are all dealing with it. However the same cannot be said for developing nations who enjoy a clear cost advantage yet very regularly get hit with infrastructure problems that compensate for this advantage.
We know that ECORE has been in different locations in Europe with its collection and production sites. Is it possible to tell about these sites? CB: e ECORE group has a network of over 100 sites throughout Europe (France, Switzerland, Hungary, Romania, Germany, Belgium, Holland and Spain), China and India. e group currently operates from 12 sea ports and six river ports. We ship over 40 percent of our finished products by means of river or sea vessels. To which markets do you sell scrap? CB: Mainly Europe, the Mediterranean Region, and Turkey.
How do you see the Turkish market and what is your expectation for it in the near future? CB: As is widely known, Turkey is Europe’s strongest and most liquid market. We have observed an evolution whereby Turkish mills have reduced their tolerance for low grade scrap. We welcome this approach as it will result in higher proportion purchases of Shredded, P&S and domestic style HMS 1/2.
Envisioning the futureofexports
Have you observed any decline in Turkey’s scrap imports in 2013? CB: Due to the ongoing effects of the crisis Turkey was not spared from unusual and sometimes unstable movements we have been able to observe in other markets. is is not unusual and is in line with trends seen globally. From a global perspective, while sales volumes of market players have declined in general, margins too are stretching due to competition. No great changes should be expected in 2014 as far as global market conditions are concerned.
In 2011 ECORE acquired Recylux in France, Luxembourg, the Netherlands and Belgium with 11 sites, strengthening your position in Europe. What can you tell us about the acquisition and can people expect there to be new acquisitions in the near future? CB: In addition to these we also acquired Metalifer Group in Eastern France, where Recylux was very present, giving us new opportunities along the Rhine river. ese acquisitions have given ECORE a better view on the market and how we will look to expand in the future.
Fadi Hraibi, chief commercial officer of Ukraine-based Interpipe, explained to SteelOrbis Istanbul the company’s vision regarding the steel billet market after commencing sales of the product in October.
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Volume 7; Issue 1
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