Jan 22, 2021
CHINESE BUYERS BEGIN ACTIVE SCRAP SEARCH IN EU
2021-02-22
Chinese buyers are becoming active in looking for scrap in various European countries, EU sources tell Kallanish. Traders are now actively contacting scrap merchants to purchase 5,000-7,000 tonnes of scrap.
This follows China’s first scrap import purchase after these imports were allowed from 1 January 2021 (see Kallanish 20 January). No contracts have yet been agreed in Europe, with buyers enquiring about material quality and availability. After understanding the grades and tonnages available they will move on the negotiation process, a source says.
Vessels from Italy, France and Spain are likely to be small in size, up to 7,000 tonnes. But Germany and Holland will be able to provide large vessels, gathering tonnages in northern Europe at no extra shipping cost, Kallanish is told.
Large Chinese companies are enquiring through traders to buy different types of scrap. They are willing to agree longer-term supply contracts if the first shipments go smoothly and if the seller is able to guarantee a constant flow of material, sources observe. Chinese buyers are looking to create long-term relationships with good suppliers but are said to be very choosy on grades, only asking for very high-quality material.
Source: Eurometal
