Strong demand settles in for ferrous scrap market
by Brian R. Hook

Global demand for steel is keeping ferrous-metal recyclers busy across North America, from small family-owned operations to large publicly-owned companies.

Exports of ferrous scrap metal increased 13 percent in 2005 according to numbers provided by the Institute of Scrap Recycling Industries Inc., a trade group representing more than 1,200 companies that process, broker and consume scrap commodities.

The Washington D.C.-based industry group reported that ferrous scrap metal exports totaled 10.7 million metric tons in 2005 compared to 9.5 million metric tons the year before. Ferrous scrap metals are magnetic metals derived from iron or steel.

Bob Garino, director of commodities for the trade group said demand has been strong and he expects the upward trend in exports to continue. He said a lot of the global demand has come from China due to strong industrial growth. This growth consumes a lot of resources, including coal, iron-ore and importantly for recyclers, ferrous scrap.

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