Because of the tremendous increase in nickel, lead, copper and even aluminum scrap pricing throughout the past several years, the recent "correction" has been disconcerting, though many people say they feel the decline was long in the making.
Leading the correction has been nickel and stainless, which saw sharp declines in August, followed by more sluggishness in September.
However, forecasting into October, the sense seems to be that markets may have stabilized, with signals that there could be a modest pickup in demand through the remainder of 2007.
While the market clings to some pessimistic thoughts, a number of nonferrous scrap dealers have been able to see some signs of optimism that contribute to the the pickup that some forecast for October.
The ever-present Chinese market continues to be very active and is looking to boost its purchases of some nonferrous metals, including aluminum.
One West Coast exporter says while the market is presently soft, he expects to see modest improvements in October and November. According to him, inventories are high and, while some offshore buyers are actively buying, they are lowering their prices.
As for copper, the exporter speculates that Chinese buyers might have been too aggressive in earlier months and now are looking to ease back their purchases. Domestic markets show mixed indicators. One processor in the Midwest says that while domestic buyers are in the market, their activity is not significant. However, they are purchasing enough to keep markets somewhat stable.
Primary nonferrous metals prices are declining, which, in some cases, is narrowing the spreads between primary and secondary metals.
Some aluminum industry observers are watching to see the impact the merger of Aleris and Wabash Alloys will have on the market.
India also has been generating some interest. Another exporter notes that India has become a larger player in the stainless steel market. This is helping nickel and stainless, which saw major price corrections recently. While the "sale" on nickel inflicted some pain on some scrap recyclers who had made significant purchases when prices were far higher, they are now seeing a modest rebound in the grade.
(Additional news about nonferrous scrap, including breaking news and consuming industry reports, is available online at www.RecyclingToday.com.)
Novelis invests $7 Million at Fab Plant in BrazilNovelis do Brasil has announced plans to invest $7 million to increase aluminum sheet ingot production capacity at its Pindamonhangaba plant in Brazil. The investment will include the addition of a new aluminum melting furnace and will contribute to a 12 percent increase in the unit’s aluminum sheet production capacity.
Installation of the new furnace is expected to be completed by February of 2008.
"This is a complex project to increase the plant’s annual remelting capacity by 70,000 tons," Roberto Rocha, director, Novelis Brazil Rolling Operations, says. "Added to other improvements, the project will also increase the plant’s aluminum sheet production capacity, regarded as the market standard due to its cutting edge technology."
The Pindamonhangaba plant is focused on the production of aluminum sheet primarily for the aluminum beverage can market. The industrial complex measures 120,000 square meters, which includes the largest UBC recycling center in South America, according to Novelis.
Alcoa Announces Capital Improvement Project at Tennessee SiteAlcoa has announced capital improvement projects totaling more than $100 million have been approved for the smelting and fabricating areas at its Tennessee operations.
These projects are part of approximately $265 million in capital investments planned throughout the next three years for the smelting and rolling facility and the Tapoco hydropower facilities. Expenditures will include $80 million for upgrades in the rolled products area and $33.5 million for enhancements in primary products, energy and environmental savings.
Additionally, the company will be installing a new crusher and delacquering furnace at its can reclamation facility as well as new building enclosures, utilities and environmental systems. It is expected that the improvements will increase its manufacturing capacity as well as support future flexibility to process other scrap types.
The company also is installing a new fume exhaust system for its 96-inch and 120-inch hot mills, which will offer environmental and reliability improvements; and, in the preheat area, installation of two massive pusher preheat furnaces with 48-ingot capacity will provide quality improvements and significant energy savings.
Enhancements underway in the smelting area include purchase of a new pot control computer system, installation and replacement of smelting power system equipment, potroom roof replacement and upgrade and modification of system ventilation and cover bucket filling station in the bath recycling facility.
The projects are expected to be completed during the next 12 to 18 months.
Process Could Fuel Aluminum DemandA team of Purdue University researchers has developed a process that could make using hydrogen fuel more practical. A new aluminum alloy is a key component in the process.
According to a news item on Economist.com, researchers at Purdue University have developed a technique to isolate non-combustible hydrogen gas that uses "small pellets of an alloy of two metals, aluminum and gallium."
The process ties into aluminum’s ability to separate oxygen from water molecules, leaving behind "loose hydrogen," while the oxygen combines with the aluminum to form alumina (aluminum in its pre-refined state).
The post-transition metal gallium is mixed with the aluminum to prevent "the formation of [an] oxide skin so that, in the presence of water, each and every atom of aluminum is available to free up hydrogen," Economist.com states.
The alumina powder and liquid gallium can be recycled or reused at the end of the process.
The researchers have created a start-up company called AlGalCo to commercialize the process, according to a Purdue University news release.