Page 54 from: December 2007
M A R K E T A N A L Y S I S
Non-Ferrous
Closed: December 1 2007
Zinc prices suffer sharp reverse
Aluminium
In late November, LME high-grade
aluminium prices edged slightly high-
er to around US$ 2509 per tonne
while three-month aluminium alloy
quotations were around US$ 2307.
There is strong demand within Eu-
rope, and both primary and secondary
smelters are reportedly operating at
full capacity. Nevertheless, there is
more than enough aluminium scrap
available to the market. In Germany,
forecasts for the months to come on
the strength of sound fundamentals,
including the fact that processors are
producing at full capacity.
There is a sufficient supply of
scrap in the marketplace, with prices
reflecting the decline in the primary
market. In Germany, prices of bright
wire scrap (Kabul) have tumbled
from US$ 7177 to US$ 6257 per
tonne, while copper granules 1A (Ka-
sus) have dropped to US$ 6404 and
non-alloyed bright wire scrap (Kad-
er) to US$ 6036. Developments in the
Netherlands have mirrored those in
Germany, with bright wire scrap los-
ing some US$ 500 per tonne to stand
recently at US$ 6536, while mixed
scrap has been trading at US$ 5496.
The European market is anxious-
ly monitoring the take-over activi-
ties of copper smelter Norddeutsche
Affinerie (NA). Europe’s largest cop-
per producer would like to acquire
Belgian counterpart Cumerio but
has yet to obtain the approval of one
of NA’s major shareholders.
Lead & Zinc
Lead prices fell during November
after a prolonged period of rising
quotations, although the market had
anticipated this price correction. Al-
though the metal’s fundamentals
are excellent, the price increases
during October were underpinned to
some extent by the activities of spec-
ulative hedge funds, some of which
have since withdrawn from the mar-
ket. However, lead prices are still at
historic highs – a serious concern for
the lead processing industries, no-
tably for producers of car batteries
who will find it very hard to pass on
these higher raw material costs to
their customers.
The weaker LME price also had
its impact on lead scrap: in Ger-
many, new soft lead prices fell from
aluminium wire scrap (Achse) prices
have advanced some US$ 150 per
tonne to trade at US$ 2502, while alu-
minium turnings (Autor) prices have
risen from US$ 1527 to US$ 1582.
By contrast, there were some price
falls in the UK. Commercial pure
cuttings were recently yielding be-
tween US$ 1830 and US$ 1912 per
tonne, while mixed alloy/old rolled
cuttings nudged up to US$ 1389-
1439. Prices of commercial turnings
fell some US$ 50 per tonne to
US$ 1275-1336 between end-October
and end-November.
In the Netherlands, new pure alu-
minium scrap was recently yielding
US$ 2228 per tonne, while first-
quality old rolled aluminium scrap
was standing at US$ 1886.
According to the European alu-
minium industry, the outlook for the
remainder of the year is positive –
mainly because of the boom in the
automotive industry.
Copper
There is strong demand for pri-
mary copper, mainly from the elec-
tronics and telecommunications in-
dustries; nevertheless, LME prices
fell slightly last month.
Many traders are concerned about
the volatility of the copper market
but most players are issuing bullish
Recycling International • December 2007 54
In Europe, prices have remained largely stable over recent
weeks against a backdrop of strong demand from the metals
processing industries. Scrap prices have also held relatively
steady, with availability being more than sufficient in some
instances. From China comes speculation that the 5% rebate
on zinc exports may be withdrawn early next year. Meanwhile,
analysts around the globe are continuing to cast nervous
glances towards the USA, although preliminary figures for the
third quarter indicate an annual GDP growth rate of 4.9%.
With the obvious exception of the US housing sector, it would
appear that large parts of the economy remain strong.
Europe
Healthy demand
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