Fall in Chinese Buying Helps EU Scrap Metal Supply

A sudden fall in Chinese scrap metal purchasing has helped improve supplies in tight European markets in recent weeks, Hans Muenster, chairman of the association of German non-ferrous metals traders VDM, said.

China has slowed down its aggressive purchasing of European scrap since its government moved to cool the economy, Muenster said at the B.I.R. World Recycling Convention in Berlin.

"In Europe we can observe that largely because of the falling Chinese demand, more material is available for the European market and traders are starting to rediscover their traditional consumers," he said in a speech at the convention.

"This applies to both copper and brass scrap and also aluminum."

Scrap prices had fallen in Germany, France and Italy. But high steel scrap prices in Spain meant supplies of non-ferrous scrap were still restrained. Traders were concentrating on steel due to its high prices.

"The flow of (scrap) supplies to domestic consumers is normalizing in a slightly more confident economic climate," he said.

"This applies to all metal scraps, although lead is rather depressed and nickel must accept one of the strongest corrections following one of the highest price rises."  Reuters