Market fluctuations not to affect scrap metals demand

GUANGZHOU (Scrap Monster): Copper scrap used in the domestic refined production in China created a new demand for imported and domestic copper scrap that didn't exist before.

China's increasing dependence on imported copper scrap, as the domestic demand is rapidly increasing, is a serious supply constraint that will remain in the years to come.

Steelmakers in South Korea heavily depend on ferrous scraps imports from the rest of the world. As per Iron & Steel Statistics Bureau, 62% of US exports of ferrous scrap in 2010 went to Asian countries. Turkey was the largest market for US scrap followed by China, South Korea and Taiwan. Over 92 million tonnes of ferrous scrap was traded around the world in 2010, up from 88 million tonnes in 2009.

In 2010, more than 21 million metric tons of ferrous scrap was collected in South Korea to help supply steel mills, while around 8.1 million metric tons of scrap was imported.

Inspite of the dramatic volatility in the commodity markets in the past few years the demand for scrap metals has not been effected. Steelmakers in South Korea and copper producers in China, have coped with a volatile commodities market in the past few years, but the volatility has not softened their demand for scrap metal.

Inspite of fluctuations in the commodity markets, the rising concern for global environment and reduced dependence on virgin mineral resources will increase the demand for scrap metals in the years to come.