IMPORTS OF SCRAP

Evening Post, Volume CXXVIII, Issue 38, 14 August 1939, Page 12

IMPORTS OF SCRAP

BRITAIN RESUMES THEM

Renewed activity in the steel industry, which has benefited from the flew of shipbuilding orders following the Government's shipping proposals, has led to a resumption of imports of scrap iron from the United States, says the "Daily Telegraph and Morning Post." Within six weeks 17 vessels have been chartered to carry cargoes of scrap aggregating over 110,000 tons from America to the United Kingdom

These are the first purchases of scrap from the United States for a considerable period. At the same time, exports of scrap from Britain to Germany are continuing, though on a very small scale. In the twelve months ending March 31. Britain sent more than 134.000 tons of scrap to Germany at prices ranging from £3 to £3 10s a ton. The imports from America will cost about £5 a ton.

A leading official on the manufacturing side of the iron and steel industry explained to a representative of the "Daily Telegraph" that the exports to Germany consist only of metal for which British industry has no use, and that shipments had fallen to an almost" negligible quantity in recent months.

WHY PRICE DIFFERS

"The scrap which is being imported from America," he added. "is of superior quality, and this explains the difference in price. During a period of great industrial activity, such as the present, it is quite normal for us to import supplies of heavy melting scrap, and to have light scrap which is not of melting quality. "We indicated to Germany and Italy some time ago that Britain could no longer supply either country with scrap which was of steel melting quality." The scrap market in this country had been heavily overstocked, partly as the result of the acquisition of between 20 and 30 old ships from the United States Maritime Commission in the autumn of 1937. These ships, which were bought for demolition, were mostly loaded with scrap in the United States before being-sent to this country.

Imports of iron ore, manganese, and iron pyrites have diminished considerably in the first four months of this year, but recent active chartering of tonnage on the freight market indicates the certainty of a big increase in imports of these materials over the next few months.

It is probable that imports of all raw materials for the iron and steel industry during the remaining months of 1939 will equal or even exceed those of the corresponding months of last year. It is significant that during the recent setback in freight rates for grain from the River Plate and elsewhere, rates for scrap from the United States, not only to this country but also to Japan, Poland, and Italy, have maintained the advances of the past few weeks.