German Non-Ferrous Supplies Short

Germany. Increasing LME prices have had their effects on the German non ferrous metals market. During the first days of January, business clearly picked up. Although consumers still order small quantities on a short term basis and avoid major stock-taking, negotiations for long term contracts have increased. Nevertheless, many traders observe the market with a skeptical eye as overall economy forecasts continue to be subdued. Prices for bright copper wire scrap had reached 155-165 Euro and were thus lying 4 Euro above the mid December quotation. Unalloyed copper wire scrap I improved at a similar scale and reached 140-160 Euro. Aluminum experienced an even more pronounced increase. Pure aluminum wire scrap was traded between 155-159 Euro, which means at 8 Euro more than in mid December.

Prices for soft lead scrap increased in the same period by 6 Euro to 43-53 Euro. Alloyed nickel scrap reached 568-660 Euro, which represented an impressive increase by 20 Euro. Prices for zinc picked up as well, with old zinc scrap reaching 54-63 Euro. Secondary metals availability continues to be unsatisfactory in Germany. Particularly copper, lead and zinc scrap cannot be obtained in higher quantities. Only occasionally the supply situation can be considered as "relaxed", as due to higher prices material that had been withheld so far reaches the market. However, secondary aluminum seems to be available in sufficient quantities. Hans P. Münster, VDM

France. The Euro made its debut and is progressively and safely used in trading, even if French traders and consumers still calculate in French francs, and then in Euro. It seems that the economic situation is off to a good start. Further to the yards reopening in France, the demand for copper, aluminum, zinc and other metallic scraps has increased compared to the unenthusiastic end of the year. The stocks are brought down and the necessity to produce leads to a price increase confirmed day after day.

Unwilling to increase prices, French remelters had to align on the international markets (Spain, Italy and somehow Asia), in order to gain volumes. Since the beginning of the year, LME quotations have not been following the sharp rise, except for nickel. Thierry Cochet, Européenne des Métaux

Italy. There has been a sudden unexpected resurrection of scrap demand from consumers just before the Christmas holidays. Despite the length of these holidays, demand proceeds in quite a sustained manner. Consumers are continuously looking for all grades of copper scrap and zinc scrap. They are getting desperate because of lack of availability from both the domestic market and especially from foreign sources. The relatively small quantities of supplies come from the southern part of France and Germany; however, offers are nowhere near the actual demands from consumers.

Prices have gone up but don't match offers coming from the United States and northern European exporters which normally ship to Far Eastern countries, despite the slowdown in demand from China in view of the forthcoming holidays of the Chinese New Year. There is also a gradual pick up in aluminum prices while stainless steel prices have difficulties following the increase of the nickel price even though availability is rather scarce. Fernando Duranti, Leghe & Metallià

Asia/Pacific Rim.  December was a rather quiet period for the non-ferrous industry in the Asia Pacific region due to the holidays and general weakness in the terminal markets. Market activity began to pick up in the New Year but the recent sudden increase in the LME prices has restrained buyers somewhat. Buyers and sellers alike seem to be taking a cautious wait-and-see approach although a supply tightness is felt.

Sentiment in Japan continues to remain poor and the recent weakness in the Yen may have a negative effect on imports. Business in Korea and Taiwan for copper and aluminum has, however, been improving and the economic climate seems to be improving as well. In China, demand from the secondary copper industry is stable and although supplies of copper scrap remains in deficit, buyers have not been able to match the prices required from most suppliers. The brass market remains particularly weak as a result of falling exports of finished products to the west. Imports of aluminum scrap into China throughout last year remained weak but it has been improving recently.