Nonferrous

FAMILIAR TERRITORY

For nonferrous traders who like predictability and stability, 2002 is proving to be their kind of year.

Although the general drift of many nonferrous metals on the LME and COMEX markets has been upward in recent months, most metals continue to trade in a narrow range.

Many dealers are content with the stable market.

"I think processors have probably started to live with the current prices," says one processor in the Mid-Atlantic region. "They have tried to set their [buying] pricing where there are margins, and since we haven’t had any wild fluctuations, we just sort of live with these prices."

Dealers hope that scrap generation will not slip further than it has as a result of the post-9/11 manufacturing slump. "I think the shake-out has happened. The companies left are going to do okay," says the nonferrous dealer.

But as of mid-August, there were still signs that a traditional fall recovery was possible. "The change in the weather and the improved stock market might help," says Michael Kirk of Golden Metals Trading, Littleton, Colo.

The rest of 2002 should reveal a lot about the direction of the overall economy and the demand for nonferrous metals, he adds.