Nonferrous Markets Continue to Impress

According to the most recent report by the Bureau of International Recycling, the nonferrous market continues to show great strength. However, in his opening remarks, Mark Natan, president of BIR’s Nonferrous Division, offered a word of caution over one of the more dynamic grades in the nonferrous metals side: copper.

Natan asks, “For producers, traders and recycling professionals alike, last year was exceptional in terms of tonnage and profits. But what can we say about the record breaking start to 2005 for raw materials?”

In first place on the podium comes copper, the price of which climbed to a historic high of $ 3307 per metric ton as recently as the middle of March.

Following up on the surge in copper, aluminum, which has seen its price reach $2,030 per metric ton on March 11 – its highest level for 10 years.

Completing the podium, Natan notes, is zinc, which looks on course to achieve a price of $1,500 per metric ton between now and the end of April. The performance of the other base metals has not been disappointing and they are following in the slipstream of the three leaders.

While the past year, and so far this year, markets have been robust, some potential trouble spots are cropping up.

Natan points to a number of areas of caution. If stocks in LME, Shanghai and Comex warehouses equate to only a few days' consumption, then this prompts speculation about the actual level of stocks lying outside of these warehouses.

Also worrying is that world economic growth rates are lower than predicted, and that growth in product availability has been both significant and rapid.

As has become customary, recyclers are turning their gaze towards China and India. These two business partners effectively orchestrate demand and prices. We note that consumers and traders in both China and India are increasingly reluctant to cover their needs at current price levels and are opting instead to delay their purchases.

I hope that the good news will continue for the next month while at the same time recognizing that, as an occasional sportsman myself, 'the fall will be harder'.

Members of the Bureau of International Recycling may read the full BIR World Mirror report by going to the association’s web site at www.bir.org.

The association will be holding its spring convention in Barcelona May 23-25. You may obtain more information about the conference by going to the BIR’s web site at www.bir.org.