German Copper Producer Faults Asian Scrap Consumers

Norddeutsche, a German-based copper producer, claims that subsidies being provided by a host of Asian countries to import copper scrap is making it extremely difficult for European scrap copper producers to compete for the material, making it more difficult to operate.

Werner Marnette, Norddeutsche’s chairman, said that India and China are both making it challenging for European producers and recyclers to compete. Singling out China, Marnette noted that purchasing strategies by China not only operate against the spirit of free trade, but have jeopardized Europe’s recycling industry.

For example, Marnette pointed out that the Chinese government has assisted its domestic companies by providing tax subsidies, credit gifts and other protectionists steps that is causing great harm to the European scrap metal recycling industry.

The comments were made during a metals and mining workshop held recently by Deutsche Bank.

In his presentation, he also noted that Chinese scrap purchasers have virtually takn over the North American market, pushing European buyers out.

Meanwhile, China expects to grow its secondary copper production by 33 percent by 2010.

To compete, Marnette said that the European metals industry must need to rethink its raw material policy so it can remain a viable business.

“Free market with unhindered exchange of goods are a precondition for the ability of the German and European nonferrous industry to function,” Marnette noted.