Making the Scene

Speakers for the ferrous and nonferrous divisions noted that despite the strength shown in 2004 and the first few months of 2005, as of late, prices for metals have been declining, with the exception of copper scrap. Various speakers said prices for ferrous scrap have been dipping, despite growing demand for finished steel.

John Neu of Manhattan-based Hugo Neu Corp. offered an overview of ferrous markets from the U.S. perspective. He said collections were beginning to slow and suppliers were confused about how scrap prices could fall so much while steel production and scrap usage were strong.

"At some point, buyer reluctance and reduced collections will cause scrap inventories to reduce further, which will then be accompanied by greater need to replenish," Neu said.

The shredder division meeting focused on legislative issues in Europe. Tony Bird, European Shredder Group chairman, said eight EU countries have indicated their intention to ban the landfilling of shredder residue within the next five years. Jens Hempel-Hansen, chairman of BIR’s shredder committee, said prohibiting the landfilling of the material could slow down work aimed at finding solutions for the material.

The stainless steel division meeting touched on the slowdown in the sector. Sandro Giuliani, chairman of the stainless steel and special alloys committee, said European stainless steel production increased by about 7 percent in 2004, but will rise by as little as half in 2005.

Barry Hunter, a guest speaker at the meeting, said a number of factors, such as the European economy, the potenially stronger U.S. dollar and higher interest rates, "would give support to reduced buying and maintaining extremely tight inventory controls."

Discussion during the paper division meeting focused on declining recovered fiber pricing and Europe’s growing exports to the Pacific Rim.

The author is Internet and senior editor of Recycling Today and can be contacted at dsandoval@gie.net.