India’s role as a significant and growing importer of aluminum scrap from the Middle East and beyond was highlighted during the Bureau of International Recycling World Recycling Convention, held May 18-20, 2015, in Dubai, United Arab Emirates (UAE).
Nonferrous Division guest speaker Mohan Agarwal, managing director of Century Metal Recycling Pvt. Ltd., an India-based manufacturer of aluminum and zinc alloys, reported that despite its high duties, India’s aluminum scrap imports had soared from 456,336 metric tons in 2010 to 724,106 metric tons three years later, with more than one-third of that amount coming from Gulf Cooperation Council (GCC) countries. He also reported that further rapid growth in incoming volumes was projected by the speaker, based on the expansion of India’s auto industry and the fact that India was “a long way” from self-sufficiency in scrap generation.
The meeting was presided by newly elected Nonferrous Division President David Chiao of Uni-All Group Ltd., based in Atlanta. During the meeting, Dhawal Shah of Metco Marketing Pvt. Ltd. in India was named senior vice president of the Nonferrous Division.
Chiao began his three-year term by offering a positive thought at the end of what had been a “pretty rough year.” The market had bounced back following the previous time the BIR World Convention was it was held in Dubai -- six years earlier. “So I hope we can repeat the rebound,” he said.
Providing local background information at the meeting, Nasser Aboura described the Middle East as “a major generator of scrap metals.” At the same time, the managing partner of UAE-based Aboura Metals said several governments in the region—notably the UAE, Qatar, Jordan and Saudi Arabia—were increasing their support for a raised awareness of recycling. But he also identified challenges, including the fact that an export-oriented scrap sales focus left the region vulnerable to global/regional economic changes, oil price fluctuations, instability around the world and legislation affecting transboundary movements of scrap.
In summarizing the reports to the latest BIR Nonferrous Metals World Mirror, board member Sidney Lazarus of Non-Ferrous Metal Works in South Africa highlighted the bearish copper market in China owing to the tight credit policy of banks, secondary smelters struggling with weak sales in the United States and the need for a review of the current export permit system in his home country.
In conclusion, Lazarus said the nonferrous scrap industry was facing “many challenges” given that volumes were down and less scrap was being generated, leading to “more competition and lower margins.”
The 2015 BIR World Recycling Convention was May 17-20 at the InterContinental Festival City in Dubai.