BIR Non-Ferrous World Mirror February 2015

The following article is based on the latest Non-Ferrous Metals World Mirror produced by the BIR world recycling organisation for the benefit of its members.

US secondary aluminium prices have slid a further US$ 20-40 per ton as secondaries appear to be holding sufficient scrap and ‘are waiting to sell the finished ingot inventory for the next quarter’. Prices of UBCs and other alloys have mirrored a slight drop in the Midwest premium.

Despite prices having fallen ‘dramatically’ in January, the aluminium scrap volumes generated and collected in Japan ‘have not been large enough’. Aluminium alloy prices are dropping more sharply than Zorba - the main raw material for ADC12 production. Conversely, there has been an improved supply and reasonable volumes of aluminium scrap traded in the Middle East. Traders’ confidence has improved sufficiently for them to sell available stock after the major correction in early January.

In Europe aluminium scrap is described as 'abundant'. The feedback from France suggests scrap buyers within Europe are prepared to purchase only small quantities at increasing discounts at a time when volumes are arriving at yards ‘in dribs and drabs'.

Long-haul export activity has also been slow, partly because of the impact of the Chinese New Year holidays across many parts of Asia. And in Germany, the scrap market has remained 'disappointing' in recent weeks given the combination of plentiful scrap availability and weak demand both at home and abroad.