EARLY ’98 SCRAP CONSUMPTION DOWN
Figures compiled by the U.S. Geological Survey, Reston, Va., show a decrease in scrap aluminum consumption by U.S. manufacturers in early 1998. In February 1998, consumers melted 356,000 tons of aluminum, down 8.2% from February 1997. Metallic recovery from aluminum scrap was similarly down, at a rate of 8.7% from year-ago figures. Many analysts are citing an oversupply of aluminum mill products resulting from decreased demand in Asia as a reason for the downturn in activity.
COPPER PRICES ON THE FENCE?
Just when it looked like copper prices might be rebounding, early May witnessed a halt in any upward momentum that may have been building for the red metal. While demand for copper—both primary and secondary—in North America appears to be strong, the market seems to be unconvinced that the demand is strong enough to overcome two hurdles. One is the increase in mining capacity that has recently or will soon come on-line, while the other is the decreased demand experienced in Asia since the string of currency crises in late 1997. Those bullish on copper believe that Chinese consumption can help overcome the Asian market situation, but concerns regarding primary overcapacity are nearly universal.