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."