Nonferrous

Nonferrous recyclers are crossing their fingers that LME aluminum and Comex copper pricing will hold steady. Processors are reporting different levels of activity, but “steady” is the adjective most commonly applied.

One wire processor reports volumes up so far this year compared to last year’s figures. “We have really been covered up with material,” he notes, saying some inbound material is excess wire and cable inventory being written off by manufacturers and sold for scrap.

Brokers representing Chinese mills, smelters and foundries continue to offer tough competition for many grades of nonferrous scrap, although the higher grades of wire are apparently remaining an exception.

Demand is also steady, although the long-term prospects for some secondary aluminum smelters (especially those supplying de-ox to steel mills) and some brass mills are a cause of concern.

Even healthy brass mills are finding 2001 less profitable. Chase Industries Inc., Montpelier, Ohio, has reported first-quarter earnings of $1.7 million, down from $5.7 million in last year’s first quarter. (Part of the profits went toward negotiating with a potential acquirer).

Chase CEO Martin V. Alonzo says the company’s financial results “were impacted by the economic slow down, which began in the third quarter of last year.” He is optimistic that “the two percentage point reduction in interest rates by the Federal Reserve since the beginning of the year should reinvigorate the economy by year-end and result in positive company quarterly comparisons in 2002.”