ALUMINUM
New Aluminum Contract On the Way
A new aluminum contract from COMEX, New York Mercantile Exchange, New York, will be offered in the near future, says John F. Moore, chairman. He told attendees at ISRI’s 1998 Aluminum Roundtable meeting in Chicago that although the London Metal Exchange (LME) provides guidance for pricing, "it has a lot of baggage." The expectation is the new aluminum contract will prove to be a more useful tool for those in the aluminum scrap industry.
In other meeting news, Steven R. Sedberry, chief operating officer, Century Aluminum of West Virginia, Ravenswood, W. Va., says the "erosion of the aluminum market share to plastics in packaging has bottomed out. Plastics has its shelf life problems." He further notes that there will be an increasing demand for aluminum in the airliner sector as a substantial number of older jets are reaching the end of their 30-year life spans.
Forecasters Express Optimism
Aluminum prices have stabilized, according to William Bean, president, Superior Alloys Corp., New Haven, Ind. Bean notes that the economies of Japan, Taiwan and China have the resources to improve. A strong U.S. economy will help these countries get back on their feet. For 1999, Bean sees aluminum prices rising in response to such factors as more aluminum being used in new automobiles.
The prediction of higher aluminum prices is shared by Thomas M. McNamara, director-equity analyst, CIBC Oppenheimer, New York. McNamara believes the LME price for aluminum will hit $1.25 per pound within the next two years.
Both Bean and McNamara made their comments at ISRI’s 1998 Aluminum Roundtable meeting in Chicago.
COPPER
China Remains Wild Card in Copper Markets
American copper scrap dealers hoping to see a significant increase in orders from China are likely to be disappointed, says John Chen, executive vice president, Tung Tai Trading Corp., Burlingame, Calif. Chen made his remarks at ISRI’s 1998 Copper Roundtable meeting in Chicago. Chen says the export market is terrible, but "you have to be there when it comes back."
Doing business in China is difficult, Chen added. He notes the country is slowly going through a privatization of key industries. Further, there is a moratorium on construction and a thriving black market, both of which adversely affect the copper scrap markets.