The most recent report from the Bureau of International Recycling, in commenting on the nonferrous market for the World Mirror, note that scrap copper continues to drive the market, helping, in some cases, other nonferrous metals.
In his opening remarks, Marc Natan, president of BIR’s Non Ferrous Metals Division, writes the following: Copper prices have kept on climbing to the heights and many of us could never have imagined such a situation, particularly at this time of year.
“Last Friday, the cash price of copper reached the record level of $3,644 per metric ton with a backwardation of $267, pulling all the other base metals in its wake.
Analysts commonly point to the weakness of stocks and of the U.S. dollar, or to the rise in the price of a barrel of oil. IN fact, everyone has been struck by this incredible phenomenon given that the fundamentals could best be described as a featureless plain rather than as a mountain. One day, perhaps tomorrow, but sooner or later, these fundamental will perform their usual and happy function of overriding this speculative trend.
The descent from the heights could be faster than the rise and we will have to keep an eye out for obstacles both for us and for our consumers. The summer period is traditionally a cautious time and demand for secondary products will show variations: steady from the mixed copper smelters, and lower to zero from the aluminum remelters.
The value of numerous secondary materials have lost their link to primary metal prices: stainless steel cuttings, for example, are trading lower even though nickel is on the increase. Is this an isolated case or is it the forerunner of a general drop in discounts? We should know very soon.
The rest of the industry report is available to members of the BIR. For more information on the association go to its Web Site at www.bir.org.