Experts constantly insist that the world must accustom itself to living with COVID. And according to the latest BIR World Mirror on Non-Ferrous Metals (members only), hyper-volatility is also likely to become a constant in the years ahead and to take its place as an integral part of business life.
Recent rapid swings in metals prices are attributed to a range of factors, including the ongoing impact of the pandemic. Omicron case numbers are easing in some parts of the world but are still at or around their peak levels in others, such as Russia. Some governments are rescinding work-at-home directives whereas others are now reintroducing the very same measure in a bid to curb the spread of the virus.
Other destabilizing factors have been the tensions surrounding Ukraine and intensifying inflationary pressures. Inflation was reported recently to be at a 39-year high in the USA, for example. Worries over rising energy costs have also impacted industry in general, with concerns in South Africa about the potential for a further 20%-plus hike in April.
At the same time, the recycling sector has continued its struggle with the twin logistics issues of rising scrap transportation costs and impaired availability of vessel space, containers, trucks and drivers. From New Zealand comes feedback of scrap metal dealers loading containers but then having to unload them and return them to the shipping line because their booking slots have been cancelled. Pre-booking space has become riskier because some shipping lines are now issuing penalties against unused bookings. In the USA, drayage trucking represents the latest bottleneck as truckers are turning away from export-related freight to more lucrative domestic business.
Adding to the many hurdles facing those companies wishing to move material, Malaysia’s long-anticipated “Guidelines for Importation and Inspection of Metal Scrap” came into effect on January 10. The new standard requires no more than 0.25% non-metallic waste by weight and zero circuit boards in aluminium and copper scrap imports.
Following the holiday period in many parts of the world covering late December and early January, a number of countries have reported a decent influx of material into yards immediately on the return to work. In many cases, however, this surge was followed quite quickly by a reduction in flows.
To end on a positive note, several more expansions have been announced in the US aluminium industry over recent weeks, with the focus on production utilizing recycled content. And India’s annual budget statement on February 1 emphasized “climate change”, “circular economy” and “clean, green energy” goals, thus underlining the importance of a robust recycling ecosystem.
With contributions from its members, BIR publishes periodical commodity reports under the label "BIR World Mirror". These detailed reports exist for Non-Ferrous Metals, Ferrous, Stainless Steel / Alloys, Paper, Plastics and Latin America and provide BIR members with up-to-date information on the respective commodity or market segment.
The report on Non-Ferrous Metals appears once every two months, whereas Ferrous, Stainless Steel, Paper and Plastics are published quarterly. Latin America is covered twice per year.
