Uruguay: healthy scrap flows but narrower margins

Sustained higher LME prices are helping to support the flow of scrap, with the result that decent volumes have been entering recyclers’ yards.

At the same time, however, the conflict in the Middle East has served almost to double oil prices within only a short period of time. With freight costs on the increase too, the overall impact has been a narrowing of margins. Furthermore, there have been examples of vessels skipping some of their scheduled stops or encountering difficulties in fulfilling certain destinations.

Meanwhile, illegal movements of scrap have continued even in government-controlled areas such as ports, creating challenges for legal entities to compete.