Published On: Fri, Mar 8th, 2013

Tougher export regulations and lower volumes challenge scrap industry worldwide: BIR

Tougher export regulations and lower volumes challenge scrap industry worldwide

Tougher export regulations and lower volumes challenge scrap industry worldwide

BRUSSELS: The BIR Non-Ferrous metals World Mirror- March 2013 predicts tightening export regulations and non-availability or lesser scrap volumes as the major threats to the industry going forward.

The South African scrap industry is intensely concerned about the new government regulations regarding scrap exports. As per the new guidelines, any scrap must be offered to a local foundry at a price determined by the International Trade Administration Commission. The world body will fix the price taking the Metal Bulletin levels as the basis. The scrap dealer must also obtain a certificate from a metallurgical engineer confirming type, quantity and quality of scrap available and where it can be inspected.BIR objects this proposal by the South African administration.

The manufacturers and importers of ferrous and non-ferrous scrap in India are burdened with 4% Special Additional Duty (SAD). There will be no changes in renewal procedures of AQSIQ licenses of BIR members. Many countries such as US and Mexico are experiencing lower volumes of scrap. Vast majority of scrap traders have reported very little inventory. Italian scrap collection and industrial production has been hampered by adverse weather conditions.

Australia, New Zealand and the Middle East countries too are witnessing lower volumes. However, Russia stands out, being resistant to scrap shortage issues. Brazil has shown excessive demand for primary grades of aluminum scraps such as extrusion. Exports of light metal scrap from Japan have plummeted. South Korean imports have seen huge volumes. The demand for lead batteries tends to remain strong in France. The World Mirror maintains a brighter outlook for the entire year, though sentiments are likely to gain strength during the latter half of the year.

Source: http://www.scrapmonster.com/news/tougher-export-regulations-and-lower-volumes-challenge-scrap-industry-worldwide-bir/1/8345