Photo of SA Recycling’s scrap metal facility at Port of Long Beach. Photo by Lydia Chain.
As manufacturing continues to increase in major Asian markets, a local metals shipper announced that it is–for the first time in 40 years–exporting iron ore from the Port of Long Beach. The new business was developed over several years by SA Recycling, a longtime exporter of scrap metal that has operated a break bulk terminal at Pier T for more than 15 years.
While iron ore exports are continuing to decrease in countries like Australia and India where over-supply and increased tarifs have negatively affected a once-bustling industry, the material–which is a core ingredient in steel–is considered a rising star in the U.S. economy with exports to Europe increasing steadily over the last few years. The price of ore has in recent years risen to prices nearing $140 per metric ton and SA says the decision to begin exporting it from Long Beach was an easy one.
“The price of iron ore is starting to rise to the point where you can afford to mine it and ship it to China, South Korea, Malaysia and other Asian markets,” said George Adams, President and CEO of SA Recycling, which loaded and sent its first 50,000-ton shipment of the raw material in March.
SA is working with CML Metals Corp. to obtain iron ore from mines in Utah, California, Arizona and Nevada. The ore is placed on ships along with mixed scrap metal that is then sent to Asian countries, including China–the world’s number one producer of steel, that melt it down to make new products. Officials say that this Long Beach operation is currently the only iron ore exporter on the West Coast.
If market demand remains strong, SA Recycling could export more than 1 million tons of iron ore from Long Beach this year, bringing more business and jobs to the local economy.
According to Morgan Stanley, global iron ore exports are expected to hit 1.17 billion tonnes this year, which is still short of forecast global demand of 1.26 billion tonnes. However, the bank expects a surplus to emerge in 2014 as supply outstrips global demand by 3.3 million tonnes.
SA Recycling is the largest scrap metal producer in the United States. In addition to the Pier T facility in Long Beach, the company also operates a scrap metal export facility in the Port of Los Angeles and annually processes a combined 2.5 million tons of scrap metal, most of which goes through the two local ports.
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