AT LEAST IT’S FLOWING
Prices for nonferrous scrap metal may not be at historic highs, but at least the material is drawing a high enough price to be flowing at a decent pace. That was the predominant sentiment of nonferrous brokers, processors and consumers at the Institute of Scrap Recycling Industries Inc. (ISRI) Mid-America Chapter Consumers Night. Attendees were more numerous and more optimistic than at last year’s event, when gloom in the ferrous segment kept some dealers away and restrained the festive feelings of others. Competition remains keen for aluminum scrap, according to dealers and consumers alike. Orders from international brokers added to the demands made on supply during the later months of 1999, and the winter tightening of UBC supplies also kicked in during January, dealers noted. But the return of more aluminum twitch to the market and the continuing generation of industrial aluminum scrap means the market is far from drying up. Copper scrap is also a brighter topic for discussion than it was 12 months ago. One representative from a copper scrap-consuming mill noted that while he is sorry to be paying more for feedstock than he was a year ago, the stronger pricing is reflective of good demand for copper products. The copper and brass tubing maker cited strong construction markets as the reason his company’s mills are running at full speed. Brokers, processors and consumers alike are optimistic that 2000 offers the prospect of being a good (or at least stable) year in the metals industry all the way through, rather than offering six up months and six down months. One source of volatility proved is short-lived: the re-emergence of some harsh winter weather after a couple of milder winters. Although pricing for trades remains tied to the LME in theory, if buyers find a wide enough area around a consuming mill has been affected by a spot shortage, bids for what little scrap has been collected will go up. It’s a case of "Supply and Demand 101," say traders. The phenomenon is not disappearing with new streamlined inventory management techniques, but rather may be becoming more prominent, some market participants contend. A few days of snow can wreak havoc on a just-in-time inventory system at mills and foundries. In the northern half of the U.S., some mills and foundries make exceptions to their just-in-time system from December through March, when one or two winter disruptions can be expected.WISE MAKES KENTUCKY BUY
Wise Recycling, LLC, Baltimore, has signed a letter of intent to purchase Columbia Metals Recycling Co., Lexington, Ky. Columbia’s current ownership is known as Columbia Ventures Corp. Financial terms of the deal have not disclosed. Columbia Metals Recycling is an aluminum, brass and copper recycler with commercial accounts and "an established off-the-street business," according to a Wise Recycling news release. "This acquisition fits in with our growth plans for both the UBC and the nonferrous scrap sides of the business," says Wise Recycling President Dick Weaver. "Plus this new facility will allow us to better service our Cincinnati customer base," he adds. Wise Recycling is one of the largest aluminum recyclers in the U.S. and operates a network of neighborhood collection centers and processing plants that service industrial and commercial accounts throughout the South and Midwest.EPA SMELTER RULE ISSUED
The U.S. Environmental Protection Agency (EPA) has issued a final air rule for emissions from secondary aluminum production facilities. According to the Institute of Scrap Recycling Industries Inc. (ISRI), Washington, the rule applies to "any establishment using clean charge, post-consumer aluminum scrap, aluminum scrap, aluminum ingots, aluminum foundry returns, dross from aluminum production, or molten aluminum as the raw material and performing one of the following pro-cessees: scrap shredding, scrap drying/delacquering/decoating, thermal chip drying, furnace operations, in-line fluxing, or dross cooling." The rule concerns dioxins, furans or other hazardous air pollutants (HAPs). The rule is targeted toward "major sources" of HAPs, or those that emit 10 tons per year of any single HAP or up to 25 tons of combined HAPs. ISRI suggests that "companies that may be covered should review the rule without delay to determine whether it applies to them and, if so, prepare to comply."ALCAN SIGNS SUPPLIER AGREEMENT WITH FORD
Alcan Aluminum Ltd., Montreal, and Ford Motor Co., Dearborn, Mich., have signed a multi-year aluminum supply agreement. "The deal is another major step for Alcan in the realization of our automotive strategy to be the leading aluminum supplier and strategic partner to the global automotive industry," says Jacque Bougie, president and CEO of Alcan. The supply agreement could enable Alcan to "fill at least 50% of Ford’s aluminum body sheet requirements and 25% of its wheel alloy needs and will supply a wide range of other applications," according to an Alcan news release. A Ford executive hails the agreements for its ability to support further applications for aluminum in automobiles. "It will enable Ford to remain focused on innovative applications for aluminum," Andrew Hinkly, Ford’s director of raw materials global purchasing says of the agreement. Although known as a maker of primary aluminum, Alcan’s annual recycling capacity is now 805,000 metric tons. Alcan operates three facilities for the production of foundry alloys primarily from recycled aluminum: one each in India, Italy and Thailand. Most of these plants serve domestic automotive markets. In addition, sheet ingot is produced from a variety of scrap in the United Kingdom, and Alcan will reportedly convert a smelter in Sebree, Ky., into a secondary smelter. In 1998, Alcan’s U.S. subsidiary, Alcan Aluminum Corp., Cleveland melted a record number of used beverage cans (UBCs). The company says its three secondary smelting plants consumed 20.1 billion aluminum cans that year, an increase of 8.5% over 1997’s total. The economic value of the cans the company recycled in 1998 amounted to $325 million, while the total weight of the cans was 312,500 tons. "Individual and group recyclers can be assured that every empty aluminum can recycled will be returned to productive life as a new aluminum can and not turned away by collection centers or diverted to landfills because of low value," says Stephen J. Bettcher, vice president of sales and marketing for Alcan Sheet Products. While the per-pound price of secondary aluminum dropped in 1998, Bettcher notes that UBCs are still a mainstay of municipal recycling collection efforts. "Year after year, the economic value of used aluminum cans remains higher than all other recycled materials, which in turn, provides the financial life line to community and municipal recycling programs." Nationwide, the aluminum can recycling rate was pegged at 62.8% for 1998 by three trade organizations that compute the rate jointly. The 62.8% rate was down from 1997’s 66.5% rate. Spokespersons from The Aluminum Association, Washington; the Institute of Scrap Recycling Industries Inc., Washington; and the Can Manufacturers Institute, Washington; blamed the lower