Posted on 05/12/2016 in category Non-Ferrous
BIR World Mirror on Non-Ferrous Metals - Issue December 2016
Will 2017 end our industry’s drought?
During the past month, the world has been subject to even more volatility in many respects owing to the US presidential election, the LME metals rally, the US dollar’s appreciation and the change to India’s currency policy.
The US election campaign finally reached its conclusion but the future under the new administration is uncertain in many ways. President-Elect Trump is new to many political and financial issues, and how his campaign promises will be turned into reality remains unclear. The whole world is watching.
Volatile LME copper rallied from US$ 4700 to US$ 5800 per tonne in just two weeks, and consumers will certainly be worried if it stays at this level for 2017. The US dollar’s value has advanced from US$ 1.20 to the Euro in early 2016 to US$ 1.06 at the time of writing whereas the Chinese yuan has been devalued from RMB 6.38 in early 2016 to RMB 6.92. Is this a sign of weakness in the Chinese economy? So-called “First Tier Metropolitan” real estate values in China are showing continuous sharp increases, thus widening the gap between rich and poor.
Meanwhile, is India’s new policy on currency likely to create any turbulence for our industries?
In this issue of the Mirror, you will be able to read our contributors’ perspectives and observations about developments in their respective countries/regions during these uncertain and volatile market conditions, as well as an AQSIQ update from Beijing.
In 2017, the new US President will be inaugurated and China’s President Xi will be in the final year of his first five-year term. Our industry has been suffering a drought for more than two years and we will soon find out if such political changes will bring about a new era for our recycling industry.
by David Chiao
Uni-All Group Ltd (USA)
President of the Non-Ferrous Metals Division