The following report has been excerpted from the BIR's monthly World Mirror. More information on the association can be obtained by contacting the BIR at info@bir.org or going to the association's website at www.bir.org.

April turns out to be a month full of uncertainty: escalating tension in the Middle East, the resignation of President Chavez in Venezuela followed by his return to power, the influence of oil producing countries, a volatile stock market, ambivalent economic statistics etc.

Asia/Pacific Rim

Kumar Radhakrishnan, SimsMetal Ltd., and vice president of BIR’s Non-Ferrous Metals Division, notes that in April in the Far East and in China, non-ferrous markets remain strong due to sound economic fundamentals. Good demand is seen for high-grade copper in Korea, Japan and Taiwan where supply and demand remain finely balanced.

Prices for brass scrap have increased slightly despite growing demand, as supply has been adequate.

Looking ahead, in the Pacific Rim the fundamentals are expected to remain strong in Asia and the prices are likely to maintain subject to movements in the terminal markets.

Middle East

Salam Sharif, Sharif Metals Ltd., another vice president of the BIR Non-Ferrous Metals Division, notes that while the Middle East was expecting a turning point in the economic cycle due to positive economic indicators, this region suffered a blow due to the outrage regarding the Middle Eastern political and social instability.

As far as base metals were concerned, there was demand, particularly for aluminum scrap. Local smelters are chasing material, while demand from the Far East is strong.

Demand for secondary aluminum has picked up considerably, which affected the local cost of scrap in the Middle East. Copper has shown some improvement.

LME prices for lead prices have dropped, but we still see a strong demand for recycled lead ingots from batteries in the region. Stainless steel as well as other metals has not shown a great deal of change.

Europe

Michael Oppenheimer, Mountstar Metal Corp., noted that for the most part copper prices remained firmly above $1,600 per ton with trading as high as $1,670 per ton. However, by mid April LME copper had fallen below $1,600 per ton and discounts had moved in.

In general, consumer foundry demand for copper continues to ease, however refineries remain aggressive.

Despite increased LME copper levels, brass scrap are reluctant to follow suit and prices remain static throughout most of Europe during March.

Aluminum prices continued to rise throughout the month, although, towards the end of March and through to the first half of April they showed signs of leveling out. Cast grades remained particularly tight and increased in price far faster and stronger than rolled scrap.

Hans P. Münster, VDM, General Delegate of the BIR Non-Ferrous Metals Division, noted that in Germany the first quarter ended on a satisfactory note.

The slight recovery, apparent in January and February, continued in March. For the fourth month in a row, the economy index IFO, which for Germany is very important, showed an upward trend.

In view of the economic development for the coming months, the majority of the contractors are in a positive mood.

In France, Thierry Cochet, Européenne des Métaux, board member of the BIR Non-Ferrous Metals Division, noted that the situation is similar to last month. There is a huge demand from aluminum consumers.

Prices are going up on a daily basis. LME prices are stable but there are small differences between primary and secondary prices. The automotive industry shows a high demand for ingot.

In April, the average price for copper was more than $1,600/ton despite high stock levels, but the LME quotation is going down with lower prices for scrap. Nickel prices are going up and down and make life difficult for processors.

Fernando Duranti, vice president of the BIR Non-Ferrous Metals Division, says Italian consumers are discouraged by the ups and downs in the non-ferrous metals market, creating a demoralizing effect, the causes of which can be attributed to several factors: erratic LME quotations, unstable political situation in the Middle East and, last but not least, the financial and economic aspects of the trade.

The flow of scrap from eastern and southern France, as well as from southern Germany, comes into Italy on a regular basis. It is however not enough to completely satisfy local demand.

Zinc still shows a shortage of material, and certain European countries prefer to keep the scrap on their domestic market.

For aluminum, the situation is getting very difficult because, here too, the lack of scrap practically covers all the major grades and prices are still on the rise.

For stainless steel scrap, the situation is critical and this is caused by both the lack of availabilities and to the increase in the nickel price on the LME.

In Nordic countries Björn Grufman, vice president of the BIR Non-Ferrous Metals Division, noted that the non-ferrous scrap situation has remained the same during the first three months of this year.

The shortage of suitable material is disturbing for the consumers and the price picture is still the same. Still, a significant amount lot of complex material is being exported to the Far East. Copper and brass scrap are at a good price, and consumers are using material that is not ideal for them, just to feed their works.

The aluminum scrap market is showing a similar picture, with high prices especially if you relate the prices to the primary high-grade aluminum contract on the LME.

North America

In the United States Robert Stein, senior vice president of the BIR Non-Ferrous Metals Division, notes that the consensus among non-ferrous scrap dealers is that things are looking brighter than they have for quite some time.

The situation regarding copper remains as it was in March. There is improved demand and material moves with each spike in the market, and then seemingly dries up on price declines.

Most grades appear in sufficient quantity to satisfy consumers' needs, with the exception of rod brass turnings, which are in very strong demand.

Aluminum scrap is still in short supply, with merchants and consumers seeking every pound of available material. However, last month's frenzy seems to have slowed down a bit, particularly on the part of secondary consumers.

Andy Wahl, chairman of the BIR Media & Metal Separation Committee, notes that North American markets were strong at the beginning of this month.

Material flow at the shredders seems to be picking up due to increased sales prices for ferrous scrap and good demand by the steel mills. It seems obvious though that prices have found a base level as flow of material is sufficient for the secondary aluminum industry since they were able to source enough scrap for the moment.