BIR world mirror Non-Ferrous 2010

Archiv – BIR | The following article is based on the latest Non-Ferrous World Mirror produced by the BIR world recycling body for the benefit of its members.
BIR | The following article is based on the latest Non-Ferrous World Mirror produced by the BIR world recycling body for the benefit of its members.

Flows of non-ferrous scrap into China have been slowed by concerns over the future direction of prices as well as by complex customs and inspection procedures. From the beginning of April, all of the country’s ports are set for an enforcement crackdown on the declaration procedure demanding importers’ full disclosure of scrap container contents, especially in the case of mixed loads.

The impact of increased customs inspections on multiple container loads at some southern Chinese ports has already been noted among European exporters.

China has remained the leading export outlet for Middle East copper scrap, while both China and India have been taking a significant share of the region’s brass scrap.
And although a large proportion of the Middle East’s secondary aluminium scrap has been remelted domestically, buyers in India and the Far East have snapped up the remainder.

The automotive sector in India is achieving huge growth rates, with annual car sales expected to accelerate from some 2 million units in the 2010-11 financial year to around 6 million units by 2015-16. Over the same period, sales of two-wheelers are forecast to surge from 9 million to 16 million units.

While the country is not enjoying the same buoyancy as India, business leaders in South Africa are eyeing the future with greater confidence after inflation fell to within the government’s target range of 4-6%. Here too, new vehicle sales have risen sharply and property market prospects have also improved. In terms of scrap availability, however, the majority of merchants report poor volumes across the board when compared to the same period in 2009.

Similarly in the USA, the non-ferrous metals markets are witnessing an insufficient supply of metal to meet current demand. Some aluminium consumers are said to be paying premiums of up to US$ 40-50 per tonne for delivery of prompt alloyed scrap while high-grade brass and copper alloys are finding ready homes on the domestic front. Appointments with buyers are proving easier to obtain, indicating that inventory levels are a source of concern for consumers.

Feedback from Russia confirms a domestic non-ferrous market ’starved of scrap’ following harsh winter weather even in the central part of the country. Abnormal snowfalls in the St Petersburg area in March served to block movements of scrap to yards, particularly by road.

Consumers in Australia, by contrast, are generally reporting a healthy availability of material while merchants are endeavouring to keep minimal stocks in response to rumours of a slow-down in demand from leading overseas markets. There has been a quickening flow of scrap into merchants’ yards in New Zealand as factories looked to liquidate stocks ahead of the financial year-end on March 31.

Turning to Europe and more specifically the UK, the cash price of copper has achieved a record sterling high of £5080 per tonne on the LME although this is said to be a reflection of the weakness of pound given that, in US dollar terms, the red metal still trails its June 2008 level by US$ 1300 per tonne. Scrap is still tight in the UK but buyers have been deterred by higher price levels. Meanwhile, prices of high-grade aluminium scrap have failed to keep pace with the increases recorded by the commercial grades. Aluminium scrap demand within the UK and wider European market is greater than that from Asia at present.

European consumers have joined Asian buyers in being ready purchasers of copper and brass scrap from France. Given the upward momentum in LME quotations, an increasing number of French scrap yard owners are holding on to their material with a view to selling at higher levels. Renewed interest in zinc scrap is reported from France, with prices improving on a regular basis over recent weeks; some hard spelter zinc has been exported to Asia at healthy prices.

Copper scrap is selling at record levels in Italy owing to shortages across the grade range, especially for the top-quality items. Domestic demand remains good and competition for material is strong. The country’s leading consumers of brass scrap are working at 65% of capacity; prices paid by the main overseas markets appear less aggressive and so material is remaining within Italy, although leading dealers’ margins are said to be almost at zero. As for the secondary aluminium market in Italy, leading consumers are working at full capacity, benefiting from a decent level of new orders as well as from a healthy availability of scrap at low prices.

In Germany too, many producers have thicker order books, with scrap running short owing to good inland demand and rising exports to Asia. Brighter industrial prospects are also reported from the Nordic Countries where, for example, Finland is expected to register economic growth of around 1.5% last year compared to -7.8% in 2009. Forecasters are suggesting that industrial production in the region will exceed earlier predictions by reaching 4-7%.