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The resurgence of copper scrap.

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by - 6/28/2016 5014 Views

Copper Scrap Price comes back with a bang!



The downfall in ferrous scrap prices in Europe earlier this year caused regional collection activity to a drastic nose dive, hitting supply of both ferrous and non-ferrous scrap, according to EMR, one of the world’s largest recyclers. As ferrous scrap prices dropped to a low of €125 ($140) per tonne ex yard in Europe in February, 30-40% of the region’s scrap collectors "disappeared", Murat Bayram, director and head, European non-ferrous at EMR, told delegates at the Metal Bulletin International Copper Recycling conference in Munich.

Ferrous scrap prices have since risen back to €210, and because of this the collection too has improved, EMR warned that further decline could tighten copper scrap markets in the months ahead, as ferrous and non-ferrous scrap collection takes place simultaneously. "When ferrous disappears, the copper disappears. When prices were rising, we saw immediately much more activity from these collectors, but there are signs that ferrous scrap prices could drop again, by €60-70 or so," Bayram appraised delegates in Munich on Thursday June 17.

The rise in copper prices above $5,000 per tonne in March and again in April also contributed to an improvement in supply, but the pressure on outright prices has once again caused generation to dry up, he said. "Every time copper hit $5,000, collecting activities were rising; people were selling more in two weeks than they had in two months". The London Metal Exchange copper three-month daily official price was $4,535-4,537 on Thursday June 16.

"We have more than 20 traders working in Europe, and I am constantly asking them for updates. Always, they say the box for copper scrap is empty. The availability is not there. Scrap is tight, there is no doubt about it," he said. The latest news and price moves from the world’s metal markets to start the Asian morning on Thursday June 23. Copper prices climbed to a two-week high of $4,725 per tonne in morning trading on the London Metal Exchange yesterday. The red metal was supported by higher oil prices and firmer equities, as well as short covering, analysts said. Copper prices climbed to a two-week high of $4,725 per tonne in morning trading on the London Metal Exchange on 22nd June 2016. The red metal was supported by higher oil prices and firmer equities, as well as short covering, analysts said. Copper had slipped back to $4,700 by the end of the official session. (Source: https://www.metalbulletin.com/Article/3564423/Search-results/ASIAN-MORNING-BRIEF-2306-ERG-copper-concs-SRB-stockpiles-leadpremiums.html?term=copper%20scrap%20prices&sort=Newest&onlyCurrent)

 


                         
Apart from the effects of lower ferrous scrap and copper prices, improving efficiency in manufacturing processes also have a long-term impact on scrap supply, he said. Overcapacity in the recycling sector has also increased competition for raw materials and hurt margins in the industry, and this is now giving way to widespread closures of scrapyards and large-scale consolidation.

Most recently, Chinese recycler Chiho Tiande moved to acquire Germany-based Scholz in late May via the discounted purchase of €524 million in debts owed by the distressed group, Bayram pointed out. "A lot of Chinese companies are trying to diversify, because they recognise there are limits to growth in the Chinese markets. We’re seeing more consolidation but this is only the start, we need to see more and we will see more," he said.

Category : Copper

Tags : Copper Scrap, Copper Scrap Price, Copper Scrap Market, Copper Scrap Market Trend


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About Georgy Abraham

As the bright morning of 28th May dawned in the year 1972, in the fulfillment of time according to the plan & will of Almighty Godbrought me forth into this world and I was brought up & educated in Orissa. My parents provided me with the best of education in an English medium school with high standa .... more info

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