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FMR NEWS - June 2009
MARKET REPORT
Welcome to another edition of Future Metals Recycling News. We've seen ferrous prices remain steady, and a slight drop in aluminum. Analysts are still cautious about copper.
Ferrous
The TEX price remains steady and is viewed by traders in a positive light as a signal of renewed demand. The slight increase in the TEX price during April and May has been offset by the increase in the AUS$, which has risen 10c from AUS$0.66 in March to AUS$0.76 in May. We know from news and stock market reports that AUS$ is hovering at the AUS$0.80 mark currently. This obviously has an impact on the exchange and scrap export prices.
You will notice an increase in rebates in June despite the increasing AUS$ because volume remains low.
The TEX price used to calculate rebates is based on the average of the TEX Box price and the average of the AUS$ for the preceding month less US$60 sea freight. The graph below shows the TEX price has risen in April and May - but the TEX Box increase has primarily been offset by the increase in the AUS$. Average AUS$ for May was $0.76. Average AUS$ on 2 June is $0.81.
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Asian TEX Box (US$) and $USD price from 1 December to 31 May
This index relates to processed, export quantity No.1HMS (No.1 Heavy Melting Steel).
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Non-Ferrous
Stainless Steel
Stainless steel scrap remains low, as Nickel is still at one quarter of its pre October price. Japan's production of Stainless is due to increase in the second quarter of 2009 by 8%; however stainless production is still off 38% since May 2008. Nickel stocks remain high and the LME price for Nickel is down from the $55,000/metric tonne in August 08 to $12,300/metric tonne in May 09.
Aluminium
Aluminium remains low as stock levels continue to remain high in LME monitored warehouses. Aluminium locally dropped AUS$0.20-$0.30 in the last week of May.
Copper
According to the Australian Financial Review, 'after slumping to a four-year low in December, Copper prices have rallied more than 50% this year as China boosted imports, but analysts warn that Chinese demand could soon wane'.
We have seen the copper price drop slightly this week off $0.20 and indications it may fall again.
Although copper use remains bullish, and demand is still strong, the expected seasonal third quarter down turn means things are unlikely to remain strong, according to the AFR.
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
Scrap metal to look up on core sector demand
Business Standard reported from Mumbai on June 14 that Ferrous scrap consumption in the country, which has been showing signs of revival since the start of the current financial year, is expected to get back on track over the next nine months, driven by demand for iron scrap from the infrastructure sector, industry officials said.
"With demand from the steel industry escalating, iron scrap consumption may see further revival to 60-65 per cent (of the 2007-08 levels) from the current 40 per cent," Hemant Parekh, director of Bombay Metal Exchange, and an importer of non-ferrous metals, said.
At the end of the last financial year, demand for overall scrap metal had weakened to 30 per cent of the previous year's average.
Most infrastructure projects, which were in doldrums last year due to paucity of funds amid the global economic crisis have picked up momentum and were likely to get back on the fast track, scrap traders said.
Among non-ferrous metals, copper is seen driving demand in the next 9-10 months because of a sharper recovery in the infrastructure sector, traders said.
"Further rise in demand for copper scrap is expected to be in line with iron scrap, which is expected to revive to 60-65 per cent in the coming months," Parekh said.
Read the full article here http://www.business-standard.com/india/storypage.php?autono=361020
FMR MELBOURNE UPDATE
Cash for Cans
You may have read about our Cash for Cans recycling scheme in recent editions of Cranbourne, Berwick or Dandenong News. This program assists local communities, sporting groups and associations to raise much needed funds for their organisations.
Following on from that article, we are reminding everyone of the advantages of recycling aluminium cans. Here are some facts:
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Aluminium cans are a resource that can be recycled over and over and over again.
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Recycled aluminium cans uses 95% less energy than producing them from raw material.
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Aluminium can recycling keeps resources out of landfill.
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Recycling one aluminium can saves enough energy to power a TV for 3 hours.
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Our can cages are available at many locations around Melbourne, so if you recycle cans, or know of anyone who does, find your nearest location and cash in those cans. Funds raised go to support the local community.
Click on the logo below for locations and opening times of the community cages in your area.
National Metals Green Bins - To Change
We are slowly respraying the National Metals bins from green to maroon Future Metals Recycling colours, and will have this completed over the coming months. Here's what they will look like.
Our People
Justin Howe
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Justin, who most National Metals Clients would know well, is now the Future Metals Recycling Operations Manager in Melbourne. He looks after the daily operations of both the Hallam and Dandenong facilities, organises the daily runs for trucks and arranges exports of ferrous and non-ferrous materials. Busy boy!
Justin is a committee member of the Australian Metal Recycling Industry Association (AMRIA). He was elected in late 2008 and is working on the issues that relate to our industry. One is the safe and cost effective disposal of refrigerant gasses from refrigerators delivered to scrap metal merchants. The requirement under the new Act, effective 1 January 2009, is that all fridges must be degassed by a licensed gas fitter. No scrap dealer can take them unless they are degassed - the concern is that we may find many fridges left by the side of the road as people cannot afford to have them degassed.
Justin is a keen fisherman and hunter and with his dog "Boofhead" can be found at Eildon fishing for trout or Mansfield chasing deer. If he's not at work you can most likely find Justin working on his boat in the shed.
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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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