Global scrap impact limited after US bridge collapse

The collapse of a major bridge in Baltimore, Maryland, this morning should have isolated effects on the global ferrous scrap market, but market participants are still assessing the situation.

A container vessel hit the Francis Scott Key bridge, an artery for the Port of Baltimore. The bridge subsequently collapsed, blocking all vessel traffic in and out of the port and triggering major rescue and recovery efforts.

The Port of Baltimore told Argus that the port is still operating and processing trucks inside its terminals but that all incoming and outgoing vessel traffic is suspended until further notice.

Market participants said a resumption of activity could take up to a few weeks as rescue efforts, cleanup, investigations and draft assessments take place.

As a result, it is unclear how long the port will be able to keep taking inbound truck traffic in the short-term because of space limitations.

The collapse and temporary suspension of vessels so far will likely have an isolated effect on the ferrous scrap market.

The Port of Baltimore is the 10th largest ferrous scrap export port in the US and over the last five years a monthly average 44,000 metric tonnes (t) of ferrous scrap were exported from the Port, according to US Department of Commerce data.

In 2023, the port shipped 486,000t of ferrous scrap with bulk shipments to Turkey accounting for most of the volumes at 314,000t or 67pc of total shipments. One bulk vessel was shipped to Mexico in November. The remaining ferrous scrap exports from the port are containerized exports with south Asia the major destination. In 2023, the shipments to India represented 16pc of the volumes, while Pakistan was 6pc.

There are currently no bulk vessels loading at the Port, according to Argus vessel tracking.

Maryland-based Baltimore Scrap, which was acquired by global metal recycler Sims Metal in 2023 is the primary bulk exporter from the port. Smith Industries also ships bulk vessels from Sparrows Point, Maryland, which is a few miles south of the Francis Scott Key bridge.

Although the global market effect is somewhat limited, market participants said that with the indefinite loss of the Francis Scott Key bridge trucking logistics moving scrap metal to the Port will be severely affected until the corridor is reestablished.

Others noted congestion concerns at other major mid-Atlantic ports as inbound vessels are likely to be diverted and any inland container depot shipments scheduled to ship out of Baltimore are rerouted to other ports. This could cause congestion at surrounding ports including, but not limited to: Norfolk, Virginia; Newark, New Jersey; and Philadelphia, Pennsylvania.

By Brad MacAulay