Posted on 30 May 2018
Potential further Chinese retaliation to Section 232 tariffs is a big concern for ferrous scrap suppliers, according to Bureau of International Recycling (BIR) ferrous division president Tom Bird. Nevertheless, China is seen resuming from 4 June issuing certificates for scrap imports from the US.
Most regions are seeing good economic growth and therefore also steel and scrap demand, but the scrap industry has been challenged, according to Bird.
“Current trade disputes have put many recyclers in our industry in a precarious position, leading to trade flow disruptions and market uncertainty,” Bird said at Tuesday’s BIR convention in Barcelona attended by Kallanish. China retaliated to 232 by suspending certificates for US-origin scrap imports in May, leaving scrap suppliers scrambling to find new export markets. There has in recent days been a softening of approach, but this could change at any time, Bird stressed.
“There is still uncertainty as to the status of shipments and CCIC (China Inspection and Certification Group) inspection during this month’s suspension,” Bird continued. “The consequences of these trade disputes will have an enormous impact on our industry this year and this is a reminder of how trade is continuously challenging and market diversification in our industry is critical.”
A full-blown trade war between the US and China could result in $2.3 trillion of global trade being wiped out in 2021, Bird suggested. The EU would not be immune to this.
