BIR Report

NONFERROUS MARKETS STAY UPBEAT

Marc Natan, president of the Bureau of International Recycling’s Non-Ferrous Metal Division, has expressed an overall upbeat outlook for nonferrous markets. In his opening to the BIR’s monthly World Mirror, Natan expresses long-term optimism for many nonferrous metals.

After acknowledging that many industry watchers are expecting some decline in many metals, he notes that the strengthening in nonferrous markets in China "heightened anticipation of a slowdown in China." He adds that the scrap industry saw a similar pattern take place last year. "Remember the sudden drop in demand? The fear that consumers wouldn’t respect their commitments? The more fanciful claims we had to settle or to bear? Then suddenly, as if by magic, all the economic indicators gave us the green light again."

While admitting he does not feel that nonferrous scrap metals will show quite the same bounce this year as occurred last year, the demand remains strong. "You don’t need to be a clairvoyant to forecast a price decrease. It will probably be greater than hoped for, but less than predicted," he says.

"This period of strength in the 21st century is not comparable to others that have gone before it. The robustness of Asian demand is such that it will take years to satisfy. Most metal prices should remain high, even though volatility may increase in the short term," he continues. "To the list of positive points, I would add the weakness of official stocks and favorable funds that keep on buying even when stock exchange quotations fall."

Not all signs are positive, he notes. "There are clearly some negative pointers, too: the world economic slowdown; the possibility that the French will vote against the EU constitution, which would weaken Europe’s position in the world; U.S. deficits; and so on. [But] let’s not be too eager to be pessimistic since reasons to worry will surely emerge soon enough."

The World Mirror is available to members of BIR. It includes a monthly outlook of nonferrous markets throughout the world and contains observations from scrap metal companies in many key geographic regions.

Additional information about the Bureau of International Recycling is available online at www.bir.org.

AQSIQ ANNOUNCEMENT ANTICIPATED

Officials from the Bureau of International Recycling (BIR) have anticipated that officials from China’s Administration of Quality Supervision Inspection and Quarantine agency (AQSIQ) will announce a new registration phase to begin after June of 2005.

According to an announcement that appeared on the BIR Web site in early May, "This new application opportunity is expected to be confirmed during the upcoming Barcelona Convention," which took place May 23-25.

Companies that had unsuccessfully applied for supplier registration have had the opportunity to re-apply since late April, in accordance with previously released AQSIQ notices stipulating that any rejected company can re-submit its application within six months after having received a rejection notice.

The new registration phase should allow additional shippers to apply for AQSIQ registration.

Get curated news on YOUR industry.

Enter your email to receive our newsletters.

Loading...
June 2005
Explore the June 2005 Issue

Check out more from this issue and find your next story to read.