NEW YORK Export prices for zorba, a nonferrous auto shred, have dipped slightly over the past week, with shippers noting that a recent uptick in U.S. supply had weakened the market.
Most exporters pegged prices for material with a 94- to 95-percent metallic content at 76 to 78 cents per pound, down from 77 to 80 cents Sept. 23, and material with a 90- to 92-percent metallic content between 73 and 74 cents per pound, down from 74 to 75 cents.
Smelters in China have been able to buy zorba at lower levels over the past week, one buyer said. "Sure, the demand is there, but supply has increased. Were able to buy our share of material at the current price levels."
Despite strong international demand, some sellers said that sentiment among shippers was beginning to shift. "Nothing really good is going on in China and nothing really good is going on here in the U.S.," one shipper source told AMM, adding that he felt the "good old days, when China was gobbling up material and paying at or above market prices," was largely in the past.
Others noted that ongoing issues related to "Operation Green Fence," Chinas stepped-up enforcement on imports of raw materials, had reduced the number of viable markets in China, which could lead to continued downward price pressure.
"We try to sell zorba to regions and buyers that dont require inspection," one exporter told AMM. "I tell the guys that are quoting that if they have to do an inspection, which means a guy from CCIC (China Certification & Inspection Co. Ltd.) arrives at our yard, its a competitive disadvantage for them."