NEW YORK Chinas Operation Green Fence,
which has stepped up enforcement of restrictions on raw
material imports, has caused an oversupply of shredded aluminum
scrap in the United States, sources told AMM.
Export prices for zorba have weakened over the past seven to 10
days as a result, some market participants have said.
Picked-up prices for 90-percent metallic units with 3-percent
red metal hovered around 73 to 74 cents per pound, down 1 to 2
cents from two weeks ago, exporters said.
The consuming community hasnt changed; domestic
demand on scrap is all the same, one zorba buyer told
My major suppliers are telling me they cant get
zorba out of the country. Prices are dropping because demand
coming from the export market is not there.
He also indicated that tags for upgraded aluminum shred
products, namely twitch, were starting to slip also. We
are without a doubt seeing twitch prices coming off, and
its not because demand is down, he said. With
zorba flooding the domestic market, there will be excess
amounts of twitch being manufactured, which will in turn bring
One exporter told AMM he was instructing employees to
triple-inspect zorba destined for ports in China. If you
are not keeping it cleanas in 90-percent metallic and
without junk like rocks, foam and circuit boardsits
going to get rejected, he said, adding that shipping
zorba to China has become very labor-intensive in recent weeks.
What should take one phone call now takes a dozen,
It was getting harder to export zorba in March and April,
and now things are getting really hard, a second exporter
said. I think a lot of the Chinese buyers who are out of
the market just dont understand how the restrictions
work. Its not black and white right now; its all
shades of gray.
Others said that because Chinese buyers had exited the market,
sellers were increasingly looking to ship product to domestic
We are getting much larger offerings of zorba these
days, one buyer said. The amount wanting to be sold
has increased dramatically over the past month. The heat is
still on in China, and some people dont know what to do
with their excess product.