Nonferrous Markets in Holding Pattern

In its bi-monthly World Mirror report, the Bureau of International Recycling took at look at market conditions through most regions of the country.

While there was no pure consensus on what the markets are doing at the present time, most nonferrous traders expect to see modest improvements in most nonferrous grades through the rest of the year.

In Europe, the summer usually is a quiet time, as many companies take their vacations, and business slows significantly.

While most of the commentators in the Mirror expressed the opinion that markets for copper and aluminum should hold up during the fall season, one area that continues to generate significant amount of interest is the evolving role that China will play in the scrap metal market.

In his opening remarks, Marc Naton, president of BIR’s Nonferrous Meals Division, noted, “Many of you will be the lucky owners of a "magic" number allocated by AQSIQ (a permit to ship recyclables to China), which will authorize you to export to China. By July 15, 1400 company dossiers had been received and more than 2000 were expected to be sent before the closing date. The first responses are beginning to arrive now and a large proportion will be sent before the end of August. Others will have to wait until November 1. Those who are rejected (and there will be some), those who are late and also new firms will have to wait more than two years before having an opportunity to re-apply, although this highly controversial approach has been disputed by international authorities as being contradictory to China's World Trade Organization commitments. Chinese demand for recyclables will remain the key to our firms' renewed good health until the end of the year. “

The full report is available to members of the BIR. To find out more about the association contact BIR at bir@bir.org.