Out now: issue 5!
Page 70 from: Out now: issue 5!
Meanwhile, the Brazilian aluminium
producer Companhia Brasileira de
Alumínio has agreed to buy Arconic’s
operations at Itapissuma in the state of
Pernambuco, for US$ 50 million, sub-
ject to regulatory approval. The facility
can produce 50,000 tonnes per year of
aluminium sheets and foils.
Copper, the classic economic indicator,
hit the current high for the year on 17
April at US$ 6 533 and has been
bouncing off the US$ 6 000 mark ever
since. In mid-September, the price was
between US$ 5 777 and US$ 5 780.
According to analysts, the high inven-
tory levels of the LME and the reduc-
tions in production in China are driving
the price of the red metal.
Copper stocks in LME’s licensed ware-
houses stood at 295 800 tonnes in mid-
September, a very high level. Blank cop-
per wire scrap cost between US$ 4
509.63 and US$ 5 557.10 and shredded
copper wire scrap was worth US$ 5
457.87 to US$ 5 667.36. Heavy copper
scrap saw prices between US$ 4 906.57
and US$ 5 127.09 while unalloyed cop-
per wire scrap I traded between US$ 5
314.53 and US$ 5 513.00.
Preliminary data from the International
Copper Study Group indicates that
world mine production declined by
about 1.4% in the first half of 2019.
World refined production also declined
by about 1% during this period.
Primary production fell by 1.5% with
secondary production from scrap
increasing by 1%.
The price of aluminium high grade was
US$ 1 781 – 1 782 I mid-September and
stood at US$ 1 240 to US$ 1 250 for alu-
minium alloy. High grade inventories con-
tinued to fall, totalling 904 175 tonnes.
Aluminium alloy is relatively constant at 6
740 tonnes. Pure aluminium wire scrap
cost between US$ 1 675.95 and US$ 1
863.39 while aluminium profile scrap
ranged between US$ 1 675.95 and US$ 1
852.37. Aluminium chips fetched
between US$ 793.87 and US$ 849.00.
The rather low price of around US$ 1
800 in Germany is because of the weak-
ening automotive industry although
analysts point out that demand in the
automotive sector last year was at an
enormously high level. Market sources
say that there is enough aluminium
scrap on the market, mainly due to the
fact that China is heavily regulating its
scrap imports. Accordingly, materials
from the USA are coming to Europe.
The price of lead rose in the last few
weeks, trading between US$ 2 065 and
US$ 2 067 on the LME. Stock levels for
lead continued to decline, most recent-
ly at 75 125 tonnes. For comparison, at
the beginning of the year they were
107 375 tonnes. Soft lead scrap was
traded at US$ 1 786.21.
According to the International Lead
and Zinc Study Group, the lead market
experienced a deficit of 47 000 tonnes
from January to July. By comparison,
for the full year 2018, the lead market
achieved a deficit of 35 000 tonnes.
Zinc was listed on the LME from US$ 2
319 – 2 320 and continues to be among
the top performers. The reason for this
is the low stock levels. In the second
week of September, zinc inventories
totalled 64 875 tonnes and there are
doubts that zinc production will
increase in the future.
According to the International Lead
and Zinc Study Group, the global zinc
market has already hit a deficit of 106
000 tonnes. By comparison, the deficit
in 2018 totalled 170 000 tonnes. Old
scrap zinc was worth between US$ 1
775.19 and US$ 1 885.45 on the scrap
market. Fine zinc (99.995 market price,
EC-duty-paid) was traded at approxi-
mately US$ 2 513.93.
* Ralf Schmitz, German non-ferrous
trade association VDM (Europe)
* Robin Latchem
5145 NS Waalwijk
T: +31 416 673 854
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