(MB) - European brass scrap market tightens
2001-06-11 07:58 (New York)
June 8 (Metal Bulletin) - European consumers and merchants have
seen supplies of radiator brass and gunmetal scrap grades dry
up this week, prompting the discount on Ocean-grade scrap to
shrink as merchants compete for what little material is
available.
The price of Ocean rose to around $20 to $880-$910 per tonne
this week, but this move was tempered by continued weak demand
from consumers. "It is very quiet still," said one European
merchant. Market conditions have been poor since the end of
2000.
Copper scrap has not shown any tightness and prices have fallen
slightly since last week. Discounts have generally remained
unchanged, and the decline is attributed to the drop in the LME
copper price.
Berry grades was trading in the range $1,600-1,660 per tonne,
while the lower grade Birch/Cliff was priced at $1,420-1,520
per tonne.
In the USA, copper scrap prices have dropped by a few cents per
lb in the last couple of weeks after primary material prices
weakened on the LME.
Business is being done at around 70-71 cents per lb for No 1
burnt grade scrap, 74-75 cents per lb for No 1 bare bright and
60-63 cents per lb for No 2 refined grade.
Still, demand has improved both in the domestic market and for
export, particularly to East Asia, something which has tempered
merchants' fears of further falls in price in the near term.
"The brass rod mills are back in the market for material and
there are some signs that the brass strip mills have placed a
few orders," said one major merchant/processor.
Further signs of improvement in demand have recently come from
China, where US suppliers have noted increased orders for
secondary-smelter grades in particular. "There have been some
taxation and duty changes that have happened in China, which
has given them [smelters] some sort of an advantage, so they're
looking for more higher grades," said a merchant based in the
mid-west.
Meanwhile, higher energy and transport prices in the USA, may
prevent scrap prices rising in the domestic market, as
secondary smelters are likely to resist another increase in
costs and may even have to reduce their output. "The energy
price has to be negative because of the melting costs but how
and when that issue is addressed is anybody's guess," said a
trader.
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