Chinese demand for high-quality zorba, a nonferrous auto shred,
has remained robust through the summer and going into the fall,
exporters told AMM.
Prices have been
steady the past two weeks, although shippers said tags could
rise as automakers in China and Japan ramp up fall production
Most exporters pegged
prices for material with a 94- to 95-percent metallic content
at between 77 and 80 cents per pound, unchanged from Aug. 29,
and material with a 90- to 92-percent metallic content is
steady at around 74 to 75 cents per pound.
Chinas push for
zorba could continue for the foreseeable future, largely
because the generation of obsolete scrap has yet to gain firm
footing in China. "They are just starting to bring shredders
online," one exporter said, noting that the amount of
end-of-life scrap generated in China is much lower than in the
United States. "Its a temporary cultural divide. They
just dont have 100 years worth of material sitting around
waiting to be shredded."
Additionally, the flow
of zorba could improve as exporters gain a better understanding
of the ramifications of Chinas "Operation Green Fence,"
which was implemented in March to reduce imports of banned
substances into the country. With news that "Green Fence"
likely will be a permanent initiative (amm.com, Sept.
5), shippers said that they will continue to adjust to the new
regulations and inspection procedures.
"Over the past six
months, exporters have adjusted to Green Fence and
have learned how to handle it," a second shipper said,
explaining that he had made arrangements to sell low-grade
material to domestic consumers on a recovery basis instead of
sending it to China.
90-percent metallic is very desirable in China right now," a
third exporter said. "The stuff over the 95-percent range is
really in demand. The aluminum smelters need the material; it
just has to make it into the country first. Zorba will become
more valuable as the lower grades become less and less