Trading activity declined in global secondary aluminium market during Nov-Dec 2016, reports BIR

<p>The latest edition of Non-Ferrous Metals World Mirror published by the Bureau of International Recycling (BIR) is out now and available for industry reference, reported Scrap Monster. The highlight of the report remains an almost silent secondary non-ferrous metal market after the Indian government, in order to curb the flow of 'black money' in the economy, decided to demonetize currency of INR500 and INR1000 denominations. The sudden withdrawal of high-value currencies created an acute liquidity crunch which went on to impact heavily on the metal scrap trade where a huge proportion of business dealings are usually made in cash. Aluminium scrap trade, as a result, hit an all-time low in the months of November and December.<br /><br />However, recent reports suggest, market is now returning to normalcy, and scrap metal trade activity should pick up soon on back of corrective steps that are being taken by the government and the country's central financial body Reserve Bank of India. <br /><br />In China, stricter environmental regulations have forced many secondary aluminium producers to close their facilities. The closures resulted in a slowing down of aluminium scrap purchase activity in major consumer markets. As per first eleven-month data of 2016, China's aluminium scrap imports declined by around 10 per cent from the same period in 2015. However, imports in November showed 28 per cent improvement over the corresponding period previous year, revealed data released by the Chinese Customs Department. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/aluscrap.jpg" alt="News" width="517" height="226" /></p> <p>In Mexico, the metal scrap hub, demand for aluminium scrap was found to be improving during the months of November and December 2016, but that was not adequate enough to impact on the country's international shipments. The devaluation of local currency and extended payment terms seem to have weighed heavy on the trade. According to market participants, the VAT distortions in metal scrap prices are expected to diminish in the short term.</p> <p>{googleAdsense}<br /><br />The US market reported healthy scrap trade activity during November-December, 2016. The Midwest scrap aluminium premium edged higher at US$ 0.0875-0.09 per lb from the lows of US$ 0.055-0.06 per lb in September. The aluminium scrap prices too have surged higher compared to that recorded in the previous month.<br /><br />In Europe, scrap supply in Germany has tightened and scrap dealers in France reported higher than adequate stock levels. In Japan, aluminium scrap exports during the first eleven months of 2016 totalled at 157,200 tonnes registering a significant 14 per cent jump over the previous year. Aluminium scrap supply in the Asian island country is expected to remain tight which may result in a bullish market condition over the short term.</p>