Nonferrous Department

Recyclers of most nonferrous scrap grades remain pleased with the flow of scrap into their yards and with the pricing.

If attractive red metals pricing is not enough to bring in copper and brass scrap on its own, then historically high ferrous prices appear to be provide added lure. (See the comments of scrap dealer Howard Lincoln in the "Warm Glow" feature.)

"Anything people can bring in, they seem to be bringing in," says a Midwestern scrap dealer.

He notes that while obsolete scrap generation has increased with the rising price tide, increases in industrial scrap generation are hit and miss. "Overall, factories are generating a little more scrap, but others are shutting down and laying people off," he remarks.

Many consuming facilities in North America continue to mobilize regarding their difficulty to find affordable red metal scrap. Two trade groups, including the Non-Ferrous Founders Society, released a statement in mid-August condemning Chinese business practices and again calling for U.S. government action to "temporarily monitor and restrict U.S. exports of copper scrap to bring back some normalcy to the supply and demand mechanics."

Some observers note that the just-in-time inventory practices of consuming mills and foundries make it difficult to ensure suitable scrap availability when markets tighten.

However, when Chinese buyers are out of the market, the consuming mills "don’t want a yard or warehouse full of material," notes a recycler, so the inventories instead build up at recycling plants.