Cold front? Chinese government attempts to control waste flows could cool the importing of copper scrap

Recycling Today, Jan, 2005 by Dan Sandoval

While the Chinese government has taken steps to rein in prices, expectations are strong for copper markets throughout the next year. Although the Chinese government is attempting to reduce the amount of speculation in the copper market, the country is not attempting to curtail consumption, though it may be able to slow the growth.

The position that the Chinese government may take could also prove problematic.

"There are rumors that the government might attempt to control prices (for copper scrap)," Chen says.

At the present time, while prices for the scrap raw material have been soaring, it has been much more difficult to push through any price increase for the finished product to compensate for the price disparity. The net result could be some scrap consumers in China might see their production decline from seven days per week to three days per week.

Regardless of the price, many companies shipping scrap material to China say that the copper market should remain fairly robust through next year.

PEACE OFFERING

The Institute of Scrap Recycling Industries Inc. (ISRI), Washington, is calling for greater cooperation with the hard-pressed domestic copper and brass manufacturing industry.

ISRI's announcement that it is seeking a more cooperative relationship with these domestic manufacturers follows on the heels of a recent ruling in which the U.S. Commerce Department rejected a petition filed by the Copper and Brass Fabricators Council, Washington, and the Non-Ferrous Founders' Society, Park Ridge, Ill. The petition sought to have the U.S. Commerce Department impose monitoring and controls with respect to copper scrap and copper-alloy scrap.

ISRI opposed the petition.

"Clearly, the copper and brass industry has an issue with other countries, not with the U.S. scrap recycling industry," Robin Wiener, ISRI executive director, says.

"The problems they face are with foreign governments and not with American businesses. ISRI has been and continues to be interested in assisting the copper and brass industry in addressing any and all documented cases of unfair trade by any foreign country."

Wiener continues, "ISRI would support the copper and brass industry's effort to seek relief under a Section 301, for instance, for any documented instances of unfair practices."

CHINA'S SECONDARY METALS SURGE IN 2004

China's output of secondary metals during the first nine months of 2004 reached 2.6 million tons, accounting for 22 percent of the world's total nonferrous metal output. The scrap metal value totaled around $5.5 billion.

The output of recycled aluminum, copper and lead reached 1.2 million tons, 960,000 tons and 180.000 tons, respectively, according to statistics released by the Secondary Metals Branch of the China Non-Ferrous Metals Industry Association.

During the same period, China recycled 1.1 million tons of nonferrous metals, including 270,000 tons of scrap copper and 520,000 tons of scrap aluminum. Meanwhile, China imported 3.6 million tons of scrap nonferrous metals, including 2.764 million tons of scrap copper, 749,800 tons of scrap aluminum and 52,800 tons of scrap zinc.