NEW YORK The price for twitch, a higher grade of shredded nonferrous automotive scrap, fell about 9 percent May 13 as market participants said Chinas "Operation Green Fence" was creating an oversupply of raw material (amm.com, May 7).
"Green Fence is having a big impact on this scrap type," one major buyer told AMM, adding that he had purchased several loads of twitch at roughly 7 cents per pound below levels seen last month.
Prices for 90-percent metallic units hovered around 74 to 75 cents per pound picked up, down 7 to 8 cents from 81 to 83 cents May 9, sources said.
Several sources indicated that the price drop reflects an oversupply of lower grades of nonferrous auto shred, namely zorba, caused by Chinas stepped-up enforcement of scrap imports. As zorba continues to flood the domestic market, excess amounts of twitch will be manufactured, sources said.
"Were getting our good share of material and at much lower prices than a few weeks ago. ... The Chinese used to take huge amounts of zorba every month. Now they have drastically reduced consumption. Everybody is wondering when they are going to let this Fence thing go," a second buyer said.
"China has backed way off," a third buyer said. "Consequently, domestic consumers have to put zorba through heavy media separation to make twitch, which is no small task. I wouldnt be surprised to see the twitch price fall further over the next month."