BIR Round-Table Sessions: Nonferrous market challenges persist

Those making decisions with important repercussions for recycling are often ignorant of the environmental and economic benefits accrued from scrap, argued Robert Stein of U.S.-based Alter Trading in his final address after more than seven years as president of the Bureau of International Recycling (BIR)’s Nonferrous Metals Division.

 

“Governments too easily are swayed by political concerns when establishing policies that are often poorly thought out or are influenced by groups that are more interested in their own agenda,” he said during the BIR’s Nonferrous Metals Divisional Meeting held in Paris on October 28.

 

Stein said the Division would shortly publish another study on movements of copper and aluminium scrap around the world, compiled by the World Bureau of Metal Statistics.

 

With regard to the latest market conditions, most scrap processing companies complained of margin compression and a lack of available material, Stein said. 

 

Division board member Alexandra Weibel-Natan of France-based Manco delivered a presentation at which she acknowledged a “tightening” market as well as more challenging trading conditions. She said the U.S. market represented one of the few positives, with “robust” demand for most scrap grades. Meantime, China had significantly reduced its copper and aluminium scrap imports over the past year, Weibel-Natan pointed out.

 

Robert Voss CBE of Voss International, chairman of BIR’s International Trade Council, described theft of scrap from containers as “more organised” than ever and said it was “the only area of business that seems to be doing very well.”

 

Voss urged members to participate in the BIR’s survey relating to scrap theft experiences, so as to collect thorough statistics on the problem. 

 

Stein underlined the importance of scrap metal exporters sharing details of container security violations with BIR and with the International Maritime Bureau, which maintains a database of trading problems and issues. Noting reluctance among many to divulge such information despite assurances over confidentiality, he said, “It is urgent that our members freely report such thefts so that we can work with international police agencies, transport companies and others so that our products can be protected.”

 

BIR’s fall meeting also featured a panel of experts from industry, finance and academia debating the theme “Europe in a state of agitation.” Moderated by Philippe Chalmin, professor of Economic History at Paris-Dauphine University and founder of Circle Cyclope, contributions also came from Alessandro Giraudo, World Group chief economist of the international Group Tradition-Viel and Patrick Verschelde, president and CEO of recycling specialist METALLUM Group Holding. 

 

In identifying “a lack of clear governance” as a key problem for Europe, Chalmin forecast that the Eurozone would record GDP growth of perhaps 0.5 percent for 2014/15, with Germany registering an “utterly disappointing” upturn of 1.2 percent. 

 

On a related note, Verschelde said there was a need for Europe to redesign its model based on disappointing growth figures. Regarding copper, he referred to predictions that the market would return to deficit in 2018 and that the red metal’s price would climb 8 percent by that year.

 

For his part, Giraudo forecast possible further weakness in the euro and ruled out the possibility of another banking collapse.

 

In stepping down from the top post within the BIR Nonferrous Metals Division, Stein was hailed as an “outstandingly good” divisional president. 

 

David Chiao of Uni-All Group was named interim president of the BIR Nonferrous Division for the period running up to the world body’s Dubai Convention next May.