A worldwide steel scrap shortage, largely created by massive Chinese demand, is creating havoc for US industries and forcing emergency action to cap prices in parts of Asia. Steel scrap prices in the US - measured by the benchmark "number one" heavy metal scrap - doubled from $77 a ton in early 2001 to $156 a ton in December 2003 before skyrocketing to an unprecedented $302 in February. Scrap exports from the US doubled from 6.3 million tons in 2000 to about 12 million tons in 2003. Steel minimills in the US have been hit hard by these developments. Similar disruptions are being felt in Asia. South Korea has issued a temporary ban on exports of scrap iron and steel bars. Vietnam cut tariffs for the second time in less than a week to curb prices.
 American Wire Producers Association |
