ISRI opposes Mexico Fe, Al scrap export ban

The US-based Institute of Scrap Recycling Industries (ISRI) hopes to convince Mexico to hold off on plans to temporarily ban the export of steel and aluminum scrap used in food packaging.

The country released a set of proposed anti-inflation laws on 3 October, which outlined the ban of some exports to help support domestic industries and control rising prices, including packaging scrap.

While ISRI does not interpret the rule to apply specifically to used beverage cans (UBCs)—which would have major implications for US scrap consumers — it is trying to open a dialogue with the country's leadership and has reached out to member companies in Mexico to get a better understanding of scope.

"While we understand the Mexican Government's interest in controlling inflationary prices for certain food staples, we fail to see the nexus or need for involving scrap steel and aluminum in this proposal. We are interested in better understanding Mexico's motivation for the proposed metals export ban and would welcome an opportunity to discuss this issue with the Mexican Government," said Fred Fischer, ISRI's assistant vice president of international trade.

In the first eight months of the year, Mexico was the second biggest supplier of imported aluminum scrap to the US at 346,017 metric tonnes (t) in addition to the number two supplier of imported ferrous scrap to the US at 999,986t.

Mexico and Canada send most of their scrap aluminum cans to the US, as neither country has rolling mills that produce beverage can sheet at this time.

By John Betz