SCRAP IRON

Evening Post, Volume CXXIV, Issue 55, 2 September 1937, Page 8

SCRAP IRON

EXPORTS TO JAPAN

EFFECT ON AUSTRALIA

(From "The Post's" Representative.) SYDNEY, August 27.

Exports of Australian scrap iron to Japan have increased so much in the last six months-.that local foundrymasters declare that they are finding difficulty in obtaining, supplies and are urging the Federal Government to issue an export ban. ■ The value of scrap iron exports for the first half of 1937 was £76,993, more than double last year's total of £36,172. In 1935-36, 11,309 tons were shipped from Australian ports to Japan, and up to June 30 this year, 19,037 tons were shipped. Since June 30 there have been many large shipments. In fact, since the close / of Ijhe wool shipping season, scrap has been a major freight on East-bound ships. One shipping line has taken nearly 3000 tons. Since the, outbreak of the war in China, as much as £7 a ton has been paid for scrap which, two years ago, would not have brought. £3 a ton. Included in the heavy scrap to leave Sydney in the. past three .months have been old cars, bedsteads, and even pieces of steel-shafted golf clubs. Speculators who had attempted to "corner" the market were responsible for the apparent shortage bf scrap iron in Australia, said the secretary of the Metal Trades Employers' Association (Mr. D. M. McDonald). "Scrap iron has temporarily got into the wrong hands—into those of the speculators rather- than those of the foutidrymen," he declared. "The maindifficulty is price. Large, quantities are concealed in Sydney and Melbourne yards, and those holding it are hoping for an advanced- price from foreign buyers. When these speculators find they can no longer sell to foreign markets, these supplies, will be available to local iron-masters."

Federal officials, after investigations, have denied that there is any shortage of scrap-iron in Australia. . Japanese business men in. Sydney state that they have received information that their country has all the scrap iron she wants. They say that all the storage space there for scrap iron is filled to capacity, and that all available lighters are piled with it. So many lighters are in use that ships are having trouble in securing free craft to handle other classes of cargo. The difficulty of handling scrap iron, too, has caused minor industrial disagreements along the waterfronts of Japan. The wharf labourers have been demanding higher wages and better Conditions for discharging the iron. These Japanese business men declare that Japan's greatest need at the moment is. pig-iron, with which to mix the scrap-iron for steel.