Ferrous scrap dealers may be getting a good chunk of the ink over difficult markets. However, many scrap dealers specializing in nonferrous metals have been seeing their end markets erode as a slew of smelters, foundries, and other end sources for their materials either close or greatly reduce their intake of material.
Recently, several battery recyclers have been reporting extreme difficulties in handling and moving batteries. The problems are two-fold, according to several handlers of the material in the eastern United States. The price being offered for batteries has plummeted over the past several quarters, making it difficult to profit from handling the material. At the same time, the cost of operating scrap facilities grows. A further issue is the significant potential liability many scrap processors who handle batteries face.
A second concern, several sources report, has been the problems shipping material to several Exide Technologies facilities. The company, the largest lead battery producer in the world, has reportedly halted taking in any more batteries and has sharply slowed its payments for shipments already received, a number of processors report. One processor notes that the company has totally stopped paying for many of its shipments since the end of August as it works off its inventory. Calls to Exide were unreturned.
The problem with markets for lead batteries adds to the problems a number of other nonferrous markets are seeing. Copper processors have been struggling with developing end markets with the recent closure of the Chemetco smelter in the Midwest. The market for No. 2 copper has sharply dried up due to only limited domestic demand for the material.
Overseas markets are not much better, although several sources do report of modest orders being placed for export.