BIR Report Looks at Nonferrous Markets

In the most recent edition of the World Mirror, a host of scrap recyclers have looked at the nonferrous market. The overwhelming sense is that markets continue to churn forward into late August and early September.

However, according to a number of the presenters, prices for some grades, most noticeably scrap copper, have reached a level far greater than expected.

In his opening remarks, Marc Natan, president of the Bureau of International Recycling’s Non-Ferrous Metal Division, notes some of the potential pitfalls of the nonferrous market going forward.

Raw material prices remained firm during the early part of September and zinc even reached its highest level for eight years. There are no lack of outlets for secondary metals. A frantic purchasing rhythm has been established by Chinese and Indian consumers – either directly or through agents – and also by industrialized countries. The winner at the moment is the scrap dealer, who is being courted and charmed for its metal at expensive prices.

And so why do we note a general feeling of anxiety? Is it justified? We will have to remain cautious given that rising oil prices as well as deadly, natural disasters have a negative economic impact. However, current conditions have not emerged all of a sudden: the fundamentals of production and consumption are not that optimistic, but the data were also not that good several months ago.

The profession has witnessed dizzying heights in recent times and there may be reason to fear difficult days ahead – perhaps a steep fall inprices and subsequent, unjustificable attempts to renegotiate contracts. Further, everyone recognizes that the powerful hedge funds have a major influence on raw material markets and that price hikes are inevitably followed by a decline. We know all about this, but it still always comes as a surprise! – Marc Natan

In addition to Natan’s commentary, the September issue of BIR’s World Mirror includes commentary from representatives from a host of other regions of the world, including China, the Asia and Pacific Rim region, the Middle East, South Africva, the United States, France, Italy, Germany, and the United Kingdom.

Members of the Bureau of International Recycling may access the full report by going to bir.org.