NEW YORK Export
prices for nonferrous auto shred, or zorba, have risen
over the past week as several exporters said Indian consumers
were looking to capitalize on Chinas crackdown on raw
Most exporters pegged
prices for material with 94- to 95-percent metallic content at
between 77 and 80 cents per pound, up about 1.5 cents from a
week ago, while material with 90- to 92-percent metallic
content was up 1 cent at 74 to 75 cents per pound.
As exporters continue
to fear increased inspection and rejection of zorba shipments
to China under the crackdown, known as Operation Green Fence,
India has become a favorable destination for the lower-quality
zorba product (90- to 92-percent metallic content) because
Indias inspection process is far less stringent,
exporters told AMM.
One shipper said he
was moving product to India because he no longer wanted to deal
with inspections by China Certification & Inspection Co.
Ltd. (CCIC). "I have been going to India to avoid CCIC
inspectors," he said. "If there is a hard way to do things and
an easy way, I would tend to choose the easy way. You
cant just stand there holding your gym shorts waiting for
loads to get rejected in China."
Several plants have
also recently come online in India, which has spurred
additional demand from importers, exporters also noted.
"The main reason India
has entered the picture is because of the new factories," a
second exporter told AMM, adding that Indian consumers
were able to deal with lower-grade material largely because of
their ability to tap into a low-cost work force that is able to
hand sort material. "Previously, buyers were looking for
higher-grade zorba, but because so much low-grade material has
become available as a result of Green Fence they are looking to
explore that market."
Others speculated that
Indias emergence into the zorba market might be the start
of a major shift in international purchasing of nonferrous
scrap. "What I have heard about India is that they have started
to actively look for material," a third exporter said. "I think
India will be a buyer for the foreseeable future, and over time
they certainly have the potential to experience explosive
continue to be frustrated by Chinas ever-changing import
regulations and environmental initiatives, although demand for
material has remained relatively robust.
"We have steady demand
from our buyers but we have been alerted that there are
additional changes in the future," a fourth exporter said,
noting that despite Chinas announcement about loosening
restrictions on imports of scrap on Nov. 1 most shippers
believe Operation Green Fence is permanent.
"Obviously, they say
Green Fence is going away, but I dont think anyone thinks
its really going to happen."