BIR World Mirror on Non-Ferrous Metals – Issue May 2025: Recyclers feeling downstream effects of tariff uncertainties
A concise summary of the BIR World Mirror on Non-Ferrous Metals – Issue May 2025. Full version with detailed market reports available in the Members Only section of the BIR website.
Tariff talk is continuing to dominate the markets as traditional material flows fall under the spell of macro-economic developments, according to industry experts supplying reports to the latest BIR World Mirror on Non-Ferrous Metals.
Feedback from India is that US tariffs have pushed up aluminium scrap prices and that North American wrought scrap has dried up. Meanwhile, UAE shipments to India have dropped owing to scrap yards being unable to recover VAT on any exports; higher grade scrap from the UAE - including Tread, Talon and mill grade - is said to be flowing to the EU and the USA.
In Canada, metal flows from the manufacturing sector are understood to have slowed as production levels are hit by the drop in US business. In Mexico, meanwhile, tariff concerns depressed buying activity in early April, with UBC and extrusion scrap prices hit the hardest amid a drop-off in consumer demand. In the first week of May, however, there was a slight rebound in buyer interest, especially for Taint Tabor and extrusion scrap which saw stronger pricing.
In the USA itself, copper pricing and spreads have been extremely volatile, with a large arbitrage between Comex and the LME. Domestic spreads for copper scrap are said to have widened significantly.
In non-tariff developments, Malaysia’s Port Klang has seen limited movements in recent months following little to no progress in the release of detained containers. The bottleneck is prompting many stakeholders to seek out alternative ports and routes to avoid further disruption.
Meanwhile, markets across Australia and New Zealand remain subdued. Given relatively low industrial volumes, merchants are faced with tightness of supply and narrowing margins. At least one local consumer has been forced to change its procurement policy and to reduce scrap volumes owing to increased energy costs.
Mixed reports are emerging from Europe. Portugal and Spain, for example, are witnessing severe shortages of material, attributed to a combination of LME price movements, supplier stockpiling and the disruption caused by several recent holidays, leading to high foundry prices in Spain for immediate delivery. In the UK, by contrast, many yards have been reporting healthy incoming volumes in April and early May, with merchants more prepared to venture into the market and make purchases; this follows the cautious trading witnessed immediately following the tariff announcements in March.
As for export activity out of Russia, this is said to remain slow owing to the strength of the rouble in relation to the US dollar.
According to reports from the Nordic Countries, new waste classifications are adding to trading uncertainties. In Sweden, for example, cables are now classified as hazardous waste; and with more materials potentially facing a similar reclassification, the absence of clear guidance from the authorities is creating confusion and operational risk, it is claimed. Regulations are said to be pushing prices lower, such as in the case of e-motors, but some businesses are managing to hold their prices and are gaining market share as a result.
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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.