Metal scrap containers pile up at Australia ports, squeezing supply in Asia

A backlog of containers of metal scrap stuck at ports across Australia has hammered the availability of steel scrap from the country and piled demurrage costs onto beleaguered traders, sources told Fastmarkets.

“Scrap supply in Asia is limited. Australia is having issues due to port congestion and carriers are imposing additional charges, which is raising prices,” a Singaporean scrap trader said.
“Some areas of Australia had restrictions due to the Covid-19 pandemic, which are now lifted and there were strikes at ports,” he added.
Hardly any Australia-origin scrap in containers was heard offered to Bangladesh this week, but buyers purchased material instead from the UK, New Zealand and Latin America.

Fastmarkets’ price assessment for steel scrap, HMS 1&2 (80:20), containerized, import, cfr Bangladesh was $300-305 per tonne cfr on Thursday October 9, down by $1-5 per tonne from $305-306 per tonne cfr one...

Published

Lee Allen

October 09, 2020

11:43 GMT

Singapore