Scrap Supply Restrictions Underscore Value of Secondary Commodities

SEATTLE (Scrap Monster): The imposition of trade restrictions by several countries, coupled with Covid-19 related impacts have crippled the global flow of scrap materials. The restrictions in supply have helped in demonstrating the valuable role of secondary commodities.

The ferrous scrap prices surged higher by $30 to $50 per ton in early May this year, even as steel mills production recorded notable decline. The jump in prices was mainly due to huge drop in scrap collection. The analysis by industry experts points to shortage of high-grade ferrous scrap in the U.S. over the next two years.

The recovered fiber prices skyrocketed, triggered by heightened demand for from tissue paper segment.

RELATED NEWS:

World Metal Recycling Sector to Reach $86.1 Billion

ISRI: Ferrous Scrap Industry Looks Forward to New Normal

The non-ferrous markets reported upward price momentum in early-Q3 this year. The already worse supply chain for copper has been further devastated by pandemic impacts. Copper producers across the world, especially those in China, reported heavy shortage of materials. The scrap shortage has impacted the operations of secondary aluminum producers. The ongoing reforms in China will further escalate scrap supply shortages in the country, as the Chinese administration has announced its decision to implement strict quota system on scrap imports into the country.