Page 72 from: April 2015
72 April 2015
M A R K E T A N A L Y S I S
Non-Ferrous
Prospects more encouraging
than the present
Closed: March 24 2015
Aluminium
Despite lower LME prices in recent
weeks, demand for primary aluminium
remains at a high level. In Europe, for
example, light metal producers are
expecting better results for the current
financial year, not least as a result of
improved order levels from the auto-
motive and construction industries
among others.
Norsk Hydro, which has announced the
acquisition of the WMR Recycling
GmbH advanced aluminium scrap sort-
ing facility at Dormagen in Germany, is
among those companies to offer a bull-
ish assessment of the metal’s prospects
in its review of 2014. ‘After challenging
years, the fundamentals in the alu-
minium market show some improve-
ment,’ states president and ceo Svein
Richard Brandtzæg. ‘Demand for alu-
minium is the fastest growing of any
metal in the world. Low weight,
strength and recyclability make it the
material of choice to respond to the
global challenge of sustainable eco-
nomic growth.’
In many industrial sectors, there is
clearly more aluminium being ordered
than can be produced in Europe, espe-
cially for alloys from scrap; the problem
is that European smelters have reduced
their capacities over recent years. The
scrap market in Germany has been
quite listless of late, with aluminium
wire scrap (Achse) being quoted at
around US$ 1897 per tonne and alu-
minium turnings (Autor) at some
US$ 1215. Aluminium scrap prices
have been under pressure in the USA,
partly as a result of a sharp decline in
export demand. According to Census
Bureau figures, US exports amounted
to 105 000 tonnes in January this year
and carried a value of US$ 176 million
– thereby tumbling 23% in volume and
24% in value terms when compared to
the opening month of 2014.
Meanwhile, the Aluminum Association
estimates that the USA’s primary produc-
tion of light metal slid 6.8% year on year
to just short of 1.69 million tonnes in
February, while output across the first
two months of 2015 was 7.1% lower
than in the same period last year. Con-
versely, statistical feedback from the
International Aluminum Institute indi-
cates that primary production in China
approached 2.42 million tonnes in Janu-
ary for a year-on-year increase of 8%.
Copper
As pointed out in leading red metal
recycler Aurubis’ Environmental Report
2014, China’s annual copper demand
amounted to around 9.4 million tonnes
last year – equivalent to some 44% of
the global total and a volume greater
than all copper manufactured world-
wide in 1980. ‘The country’s demand
continues to grow, leading to expecta-
tions of a 25% increase to nearly 12
Market conditions for many of the leading
non-ferrous metals are relatively flat at
present but many industry analysts are
convinced that better times lie ahead,
particularly for aluminium. As of March 24,
LME cash prices are at the following per-
tonne levels (the corresponding figures from
our previous non-ferrous metals report
of late February are given in brackets):
aluminium US$ 1787 (US$ 1791);
copper US$ 6093.50 (US$ 5710); lead
US$ 1823.50 (US$ 1761.50); zinc
US$ 2070 (US$ 2049); and tin US$
17 500 (US$ 18 090).
RI-3 Analysis Non-Ferrous.indd 72 30-03-15 10:05
