CHINA
TopRecycle, www.TopRecycle.com
In Southern China as March began, copper, aluminium, zinc and other nonferrous metal prices enjoyed a rebound. Market confidence slightly recovered as more and more buyers stepped into the market.
The volume of market trading turned for the better, but many plants that are in great need of replenishment to keep normal inventories only purchased small amounts. Buyers remained extremely cautious about their procurements.
However, the government’s reserve plan and signs of a nonferrous metal industry revitalization are easing the market pressure for the time being. China’s demand has become the motivation for a copper price rally and a decreasing of LME copper inventory. This has given investors a glimmer of hope.
The surging of copper spot and futures also brought hope to domestic copper scrap recyclers and consumers. The mood of producers of copper products has been easing slightly, yet the supply tension in the domestic copper scrap market has not been eased. This may further underpin copper against price declines.
A copper scrap processor in Qingyuan, Guangdong, says the copper scrap price has increased to some extent, and the market trading has turned for the better compared with the earlier period, yet most consumers stick with cautious buying strategies in general. At the same time, holders are reluctant to sell their limited inventories of copper scrap rashly, sticking to their quoted prices.
This report has been prepared by TopRecycle, a market information company found on the Web at www.TopRecycle.com.
LEAD - EUROPEJohan van Peperzeel
The big exporters here in Holland are seeing growth in the market to China. But we do not see that in the (domestic) European market. The Chinese market is buying more copper and buying containers that had been stored in places like Shanghai. Chinese buyers are coming back to the European market.
The automobile sector and the construction sectors are both in bad shape. The aluminium market right now is seeing no real change at all. The LME prices for aluminium and lead increased a little bit, but there is no serious reason why it increased; just by, perhaps, speculation.
At our association meeting, I noticed that everyone is having difficulties. There is absolutely a lack of material. Business is approaching the summer months, and the need from factories might be even less. Right now, recyclers have no scrap to process.
Johan van Peperzeel can be contacted at jh@peperzeel.nl.
GERMANY
Boris Bronneberg, Source Montan Handels
Prices are going up and Chinese buyers are substantially more aggressive than they were before. They are overpaying for the contents on certain items, which I think is not a good thing.
I think they are speculating on something that is probably not going to happen. I’m seeing a lot of scrap traders with a very short-term memory. They’re not seeing that the prices are unrealistic.
We have export brokers going to some smaller dealers and buying multiple loads and sometimes one or two containers, but that’s something that’s been going on for a number of years. They are overpaying and a lot of exporters are following their terms without having sufficient security, in my opinion.
Boris Bronneberg of Source Montan Handels can be contacted at boris@source-montan.de
RUSSIA
ldar Neverov, Scrap Market Ltd.
The market has improved quite significantly. We have seen good developments in prices for copper scrap and good consumption and good availability of scrap because the snow has gone in central Russia. For aluminium, the demand is still quite bad. A lot of small and medium-sized foundries did not place orders.
We don’t have too much industrial activity in many areas of the economy, but scrap is generated by new sources, such as electronic scrap. Some of the traders have developed recycling facilities for electronic scrap, and they can take scrap from new computers, TVs and different electronic devices.
Ildar Neverov of Scrap Market Ltd. can be contacted at siberiametals@bk.ru.
Stainless Steel ITALY
Dr. Sandro Giuliani, Giuliani Metalli SAS
It is still a very high-priced and yet a poor market. Prices are moving higher but the small quantity on the market can be difficult to sell. Some sell to Asia, but all the dealers are working with half of their usual quantity.
Industrial scrap generation is much poorer and also demolition generation is poor. Some small and medium-sized dealers are keeping material because they are waiting for higher prices to cover what they paid for it.
Dr. Sandro Giuliani of Giuliani Metalli SAS can be reached at giulianimetalli@tiscali.it.
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