Page 31 from: November 2005

D espite concerted government efforts toapply the brakes, the Chinese economy
had grown by a further 9.4% in July-
September this year. Furthermore, the under-
lying fundamentals in China remained strong,
the BIR Non-Ferrous Metals Round-Table was
informed.

According to Ben Lee of China’s Alco
Resources, good growth within his country’s
manufacturing sector had ensured ‘very
strong demand for all metals’, and particular-
ly for copper scrap. ‘Discounts for No 2 copper
have remained quite steady, with quotations
of US$ 3700-3750 being heard recently for
Birch/Cliff,’ he told delegates.

Having also noted good demand and rising
prices for brass and low-grade material such

as copper cable, Mr Lee reported a slight
improvement in market conditions for sec-
ondary aluminium grades like Zorba on the
back of ‘strength in the auto industry and the
anticipated increase in export orders’.

Duty changes in Russia

In his report on the Russian market, Ildar
Neverov of Moscow-based TeplotovResource
explained that the government had reduced
the export duty on secondary aluminium
alloys from 10% to 3%, while the duty on nick-
el alloys had been removed altogether. The
speaker also reported that all of the country’s
scrap operations were to become exempt from
VAT with effect from the start of next year.

Mr Neverov pointed to a 2% increase in
Russia’s aluminium production following the
installation of new capacity in the Urals and
eastern Siberia, adding that this would gen-
erate increased demand for scrap.

In his European market review, Carmelo
Paolucci of Trentavizi Srl in Italy described
copper as the ‘superstar’ of the non-ferrous
metals sector. He noted that high LME copper
prices had led to scrap price increases and a
lack of prompt availability of raw material.
‘European refineries are working at full capac-
ity but are suffering pressure on margins
because they cannot compete with the prices
paid by overseas buyers,’ the speaker observed.

Meanwhile, poor consumption of semi-fin-
ished products had led to sluggish demand
from secondary aluminium smelters, accord-
ing to Mr Paolucci.

Zinc a star performer too

BIR Non-Ferrous Metals Division President
Marc Natan of Malco SA in France suggested

both copper and zinc should be accorded ‘star’
status given that their prices had risen by,
respectively, more than 30% and 22% since the
start of the year. The aluminium price had
gained 5% over the same period whereas nickel
and tin had sustained falls of more than 11%.

The two major hurricanes in the USA had
helped to create an ‘extreme’ short supply of
trucks and other forms of transport, explained
divisional Senior Vice-President Robert Stein
of Alter Trading. ‘The costs of doing business
have increased accordingly,’ he told delegates.

The Round-Table in Milan also featured an
open discussion moderated by Bob Garino,
Director of Commodities at the US Institute
of Scrap Recycling Industries. One of the pan-
ellists, Loretta Forelli from Italian scrap con-
sumer Forelli Pietro SNC, said that Chinese
demand for scrap had created huge supply
problems for industrial users in both Europe
and North America. ‘Vanishing scrap is the
concern for us,’ she underlined. ‘It is impor-
tant that your clients survive.’ Europe ‘lacks
the tools’ to fight against the long working
hours and low labour costs assisting the com-
petitiveness of Asian countries, she added.

Mr Natan defended Europe’s scrap industry
by insisting that its sales were not confined sole-
ly to the wider export markets. While voicing
concern for the supply problems encountered
by consumers, he emphasised: ‘We have to pur-
chase and we have to sell at realistic prices.’

Earlier, Eurometrec President Bjorn
Grufman of MV Metallvarden AB in Sweden
had told delegates: ‘We know that EU con-
sumers do not like scrap exports because the
materials escape EU recycling facilities, but
we have to defend totally free trade as long as
it is fair.’

Non-Ferrous

Recycling International • November 2005 31

Having seen the copper price surge through the US$ 4000 per tonne barrier

shortly before the BIR Non-Ferrous Metals Round-Table in Milan, one dele-

gate suggested that the red metal had now assumed ‘superstar’ status.

Copper achieves
‘superstar’ status

B I R M I L A N

Chinese demand for scrap has created
huge supply problems for industrial users
in both Europe and North America.

Robert Stein of USA-based Alter Trading (left) and Division
President Marc Natan of Malco SA, France.

Harvey Rosen of Alpert $& Alpert Iron & Metal Inc. , USA (left)
and ISRI’s Director of Commodities Bob Garino, who moderated
the Non-Ferrous Division’s round-table meeting.

By Ian Martin

RI_038 BIR Non-Ferrous 04-11-2005 09:56 Pagina 31