Non-ferrous market isn’t exactly at full steam ahead

Scrap consumers in Russia, and mainly those who deal in aluminium, have been rocked by the probability that Kazakhstan will shortly enforce export barriers on some types of scrap. It is argued that, ‘this is in clear contradiction of many Customs Union regulations & other free trade agreements’. ‘Both the Kazakh and Russian scrap communities are against this initiative.’

In the meantime, the UK secondary aluminium sector has struggled with the failure in the value of sterling which has followed the nation’s decision to leave the EU. ‘The Far East markets have suddenly become very competitive and the export market has not made life easy for the UK foundries,’ it has been reported.

‘Considerable’ amounts of aluminium scrap – mostly UBC – have been exported to nations such as China & South Korea, owing to ‘sluggish’ demand for scrap in Japan. In the first half of 2016, Japanese aluminium scrap exports rushed 12% year on year to 81 551 tons.

Owing to a more noticeable seasonal decline in vehicle production, demand for aluminium scrap has also been below normal in Mexico, an abundance of primary aluminium & ‘the healthy availability of imported scrap’.

And from the USA, it has been stated that sheet & cast aluminium have been hard to find ‘as Zorba prices in May & June made it more striking to shred the metal’, while it is thought subsequent price developments may inverse the drift in the coming future.

According to local feedback, the secondary metals market in India ‘isn’t exactly at full steam ahead’. ‘Domestic aluminium scrap prices have moved down despite a hardy LME; the upcoming holiday season has decelerated purchases of brass scrap in the Jamnagar area; and trading margins have developed non-existent in copper.’

Of late scrap activity levels have been lessening in Germany, with scarcities expected to appear particularly for high-quality aluminium & copper scrap.

The country’s secondary resource market was ‘fragile’ last year among falling prices & lower profits for related enterprises, according to a report from the ministry of commerce in China

Though, recycled non-ferrous metals volumes amounted to 8.76 million tons for a year-on-year gain of 9.8% however the overall value of recycled non-ferrous metals increased by 14% in 2015 to Yuan 139.56 billion.

In contrast, China’s non-ferrous scrap imports dropped 6.7% to 5.767 million tons.