Will Los Angeles Scrap Metal Recycling Take a Hit?

Scrap metal recycling companies in the Los Angeles area are watching the global supply chain disruption closely. As we’ve written about previously, both the proposed changes in import restrictions from some countries as well as the general backlog of container ships trying to get into California ports may be contributing to a disruption in the scrap metal export market.

Scrap metal for Los Angeles offloaded in Ensenada
Scrap metal for Los Angeles offloaded in Ensenada

Such a disruption could affect scrap metal yards that export much of their recyclable materials. As of now, however, scrap metal dealers such as TM Scrap Metals in Los Angeles are not seeing a slowdown. While some metal recyclers are more focused on  foreign markets and exporting their scrap, we deal primarily with U.S.-based firms who want to purchase scrap metal.

Scrap metal finds a way around shipping backlog

Getting Around the Scrap Metal Shipping Backup

While it’s true that the backlog of container ships outside our ports is having a negative affect, some enterprising companies are finding ways around the problem. Some have decided to reroute their ships to ports such as Ensendada, Mexico which is not experiencing a backlog. Shipping companies are able to unload their cargo, pay less in taxes and can transport their goods into the United States by truck within a couple of hours due to Ensenada’s location just south of the U.S.-Mexican border.

This is an end run around the supply chain turmoil north of the border and may alleviate some of the problems we in the U.S. and specifically Los Angeles are facing. While it does help speed up the arrival of goods into the U.S., it does not address U.S. exports and containers of scrap metal for export may remain stuck on Los Angeles’ or Long Beach’s docks for some time yet.