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FMR NEWS - April 2009
MARKET REPORT
This latest edition of FMR News shows that while the TEX price continues to fall, we are seeing some stabilisation in rebates and a rebound on prices for Copper. Future Metals Recycling has also received some positive press about its Community Group Can Cages in the local papers.
Ferrous
Most of you would be well aware of the fluctuations in the Australian stock market - the same can be seen in the TEX price for the start of 2009. As we indicated in our last newsletter the possibility of a reduction in the scrap metal rebate would be known by mid March. The index continued to fall but not to the same extent as the dramatic lows of last year and stabilised at US$224.50 / metric tonne for HM1 in export quantities.
Rebates from the 18th March were reduced by around $30 a tonne due to this fall in the TEX price. Some of you will have noticed this drop in rebate in mid March. There wont be any further drop at this point for April, however due to the increase in the value of the Australian Dollar in April, the rebate may be reviewed again at the beginning of May.
In the past, the scrap metal price was guaranteed to be held for the whole month but today we are seeing weekly changes, with buyers trying to stay ahead of the market and not be caught with overpriced stock.
Reading through the latest news articles we see steel exports from Japan down 46.7% since this time last year and imports of steel products down 48.7%. There is no doubt the economy is slowing dramatically and we have seen the volume of scrap decrease over the last 4 weeks.
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Asian TEX Box in US$ from 1 December to 30 March
This index relates to processed, export quantity No.1HMS (No.1 Heavy Melting Steel).
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Non-Ferrous
Aluminium smelters around the world are being closed or moth balled due to the continued downward trend in the aluminium price. This downward trend is due to large stock piles in LME (London Metals Exchange) warehouses. Aluminium on the LME has continued to fluctuate since mid January, averaging $1,334 for March. Aluminium will remain low and although we have seen some upward movement in early April the likelihood of a sustained recovery in the short term is unlikely, as can be seen by the graph below.
Copper, on the other hand, has seen a steady increase of approx 25%. It hit its highest closing levels since October 29, 2008 according to the Financial Review. On the LME, Copper closed at US$4,310 / metric tonne. We are seeing some renewed activity in this area from door trade.
INTERNATIONAL NEWS
Market history
(Sourced from www.metalprices.com)
Copper and Aluminium market history for five months (click on graphs for larger versions).
International news in brief
Bloomberg reported on April 15 that Copper gained for a fifth consecutive session in London, the longest rally in 14 months.
Inventories in warehouses monitored by the London Metal Exchange dropped 11,600 metric tons, or 2.4 percent, to 480,400 tons, the biggest decline since 21 October 2008.
Futures for May delivery in Shanghai are $485 a ton more expensive than London, encouraging Chinese consumers to import more metal, said Herwig Schmidt, head of sales at Triland Metals Ltd. in London.
"This price differential works like a big vacuum cleaner," Schmidt said. "As long as this goes on, people say, 'let's go with it'."
Demand outside of China may be hurt the most by the high prices.
"The question is how many people will be there outside of China to rush in and buy because they're just sitting there and looking at it," Schmidt said. "Demand has not been very good" outside of China, he said.
Read the full article here http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZ41l8.zeF3A
European demand for non-ferrous remains low in most areas whereas the increase in Australian non-ferrous pricing is being driven by the Asian region, according Metal World's Metal Industry News (www.metalworld.com)
BIR Non Ferrous Mirror reported in February 2009 that tight market conditions have persisted in Australasia where copper-based scrap has been enjoying high levels of demand against a backdrop of limited availability (www.bir.org)
FMR MELBOURNE UPDATE
Our People
Peta-Mae Cochrane
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Peta is our receptionist and weigh bridge operator. She is the person most of you speak to when you phone for a bin changeover, pick-up or any other general enquiry.
Peta's interests are horse riding, travelling, cooking and taking full advantage of her youth.
Having twice tried to complete an around Australia trip in her pride and joy a Kombi named "Daisy" she unfortunately had to have "Daisy" towed back to Melbourne for major repairs on both occasions.
We have offered to buy "Daisy" for her scrap value, however Peta will hear none of it and is determined to complete the
repairs and plans to finish the trip she started in the future.
Peta is always ready to answer any of your questions regarding scrap metal, demolition, can cages and commercial bins or find someone in the organisation that can. Say "Hi" to Peta next time you call.
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Local News
The following article appeared in the Dandenong Star, Berwick News & Cranbourne News on April 15.
Easy Cash in the Can
Future Metals Recycling can help schools, businesses and community groups turn their aluminium cans into cash.
In a bid to help groups raise much-needed funds during the economic downturn, Future Metals Recycling will provide can cages free of charge and pay for the aluminium cans collected.
Company director Tyrone Landsman said the cages, on offer to groups who meet specific criteria, could help ease the financial burden.
"We deliver the cage free and pay for the cans collected inside", he said.
"Can cages are a great fundraising idea and work particularly well in places where drinks are sold or consumed from aluminium cans."
Mr Landsman said residents could also turn their old metal into money by cashing in steel trash at Future Metals Recycling in Ordish Rd, Dandenong South or Star Crescent, Hallam.
"We accept everything from car bodies and white goods to electrical wire, stainless steel, corrugated iron, copper, brass and fencing," he said.
Mr Landsman said a one-way traffic flow, computerised weighbridge and payment system and covered drop-off area made disposal easy.
"Our team will even unload your scrap metal," he said.
He said customers who sorted their scrap metal before delivering it to the centre would be paid higher prices.
Future Metal’s commitment to recycling meant all materials received at the site were sold to be manufactured into new products said Mr Landsman.
He said people who had large amounts of waste metal could contact Future Metals Recycling and arrange to have a skip delivered.
"We can provide services to meet the requirements of individuals, businesses and tradespeople," he said.
To enquire about obtaining a can cage or for more information contact 1300 1 SCRAP (1300 17 27 27) or our enquiries page at www.futuremetals.com.au
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1300 1 SCRAP |
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1300 17 27 27
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1300 1 SCRAP |
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1300 17 27 27
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1300 1 SCRAP |
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1300 17 27 27
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