BIR published a report on non-ferrous metal scrap

According to the latest report from the Bureau of International Recycling (BIR), the situation in the global non-ferrous scrap market is complex, including an oversupply in some countries and a shortage in others.

Scrap metal exports to India have declined significantly, pending greater clarity on inspection procedures prior to shipment. Meanwhile, reports have emerged that Indian authorities have announced certain relaxation of the previous rules, accepting photographs as an alternative to video footage confirming the quality of the scrap metal.

At the same time, the Chinese State Council has proposed new taxes on pollutants and solid waste, as well as penalties for exceeding established limits and incentives for those who exceed national standards. Consequently, consumption of refined copper in China is expected to grow by almost 4-5 percent in 2015.

The Russian government has temporarily abandoned plans to impose restrictions on the export of scrap metal. However, the new government regulation defines many categories of ferrous and non-ferrous scrap metals under its jurisdiction, which allows the government to restrict exports without additional consultation.

Weakness in aluminum prices on the LME led to a further decline in the price of aluminum scrap in Japan. Aluminum scrap prices have dropped nearly 5 percent over the past month. The demand for domestic raw materials has grown in the country. Mexican demand for aluminum remains strong, especially in the automotive industry.

The Ramadan season has led to a sharp slowdown in business in the Middle East. Scrap prices for aluminum and copper remain under pressure due to weak demand. Activity levels also fell in South Africa. The illegal export of copper and copper scrap without the necessary permits is thriving here.

Meanwhile, non-ferrous scrap prices remain weak in the US. Scrap metal supplies remain low in France as well. The sharp drop in copper prices on the LME could have an impact on the Scandinavian scrap trading activity. Scrap prices continue to decline in Germany, where availability of copper scrap remained high. The nickel market had significant surplus availability. At the same time, the demand for zinc remained strong in Germany.

The scrap metal trade in the UK, by contrast, is reporting a supply deficit. The domestic scrap industry still hasn't recovered from the sharp decline in aluminum premiums from $ 520 to $ 170. Italian demand reported robust growth on the back of increased battery production. Copper scrap in this country has been in low availability lately.