Posted on 22/05/2015 in category Convention

Recent BIR World Recycling Convention & Exhibition in Dubai

(18-20 May 2015)

Non-Ferrous Metals Division: Spotlight falls on India’s key role as a scrap importer

David Chiao of Uni-All Group Ltd has become the first person of Chinese origin to head up a division of the BIR world recycling organisation. His election as President of the Non-Ferrous Metals Division was confirmed at its latest meeting, staged in Dubai on May 19. At the same time, Dhawal Shah of Metco Marketing Pvt Ltd in India was named Senior Vice President.

Mr Chiao began his initial three-year term by offering a positive thought at the end of what had been a “pretty rough year” on the whole: the market had bounced back following the previous BIR World Convention in Dubai six years earlier - “so I hope we can repeat the rebound”, he said.

Providing expert local background to the meeting, Nasser Aboura described the Middle East as “a major generator of scrap metals”. At the same time, said the Managing Partner of UAE-based Aboura Metals, several governments in the region - notably the UAE, Qatar, Jordan and Saudi Arabia - were increasing their support for a raised awareness of recycling. But he also identified challenges, including the fact that an export-oriented scrap sales focus left the region vulnerable to: global/regional economic changes; oil price fluctuations; instability around the world; and legislation affecting transboundary movements of scrap.

The role of India as a leading, and growing, importer of aluminium scrap from the Middle East and further afield was emphasised by fellow guest speaker Mohan Agarwal, Managing Director of Century Metal Recycling Pvt Ltd - India’s largest manufacturer of aluminium and zinc alloys. Despite its high duties, India’s aluminium scrap imports had soared from 456,336 tonnes in 2010 to 724,106 tonnes three years later, with more than a third of the latter total coming from Gulf Cooperation Council countries. And further rapid growth in incoming volumes was projected by the speaker based on the expansion of India’s auto industry and the fact that his country was “a long way” from self-sufficiency in scrap generation.

Also with regard to India, it was noted that the evening prior to the Non-Ferrous Metals Division meeting in Dubai had seen the publication of new and keenly-awaited pre-shipment inspection procedures governing metal scrap imports into the country (more information can be obtained from the BIR update to members issued on May 19 and the topic will be covered in more detail in the press release on the BIR International Trade Council meeting in Dubai).

In summarising the reports to the latest BIR Non-Ferrous Metals World Mirror, board member Sidney Lazarus of Non-Ferrous Metal Works in South Africa highlighted: the “bearish” copper market in China owing to the tight credit policy of the banks; secondary smelters struggling with “weak sales” in the USA; and the need for a review of the current export permit system in his home country.

As a general conclusion, Mr Lazarus said the non-ferrous scrap industry was facing “many challenges” given that volumes were down and less scrap was being generated, leading to “more competition and lower margins”.