BIR Trade Council Spotlights Notable Dip in Scrap Trade Volumes

SEATTLE (Scrap Monster): The expert panel of traders and recyclers organized by the Bureau of International Recycling (BIR) cited notable decline in global scrap trade volumes. The scarcity of scrap and disruptions in supply chains acted as main barriers to global trade during the initial quarter of the year.

The collection and sales of automotive and civil engineering-related materials were highly impacted. Most markets switched from over-supplied to over-demand. The European region reported huge domestic demand for packaging, thereby resulting in decline in shipments to Asian destinations.

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The sudden and comprehensive lockdown in India affected cargo movements, as even seaports and banks were not spared from restrictions. The clogged containers in ports and the possible delay in clearing may result in demurrage charges or other late charges. However, contracts to that country have started to pick up. The container shipments and unloading activities were not disrupted in other major ferrous scrap destination such as Peru and Taiwan.

Post Covid-19 crisis, multinational companies are likely to reduce their manufacturing footprints in China. Other Southeast Asian markets such as Indonesia and Japan are likely to emerge as the direct beneficiaries of such as move.