BIR Non-Ferrous World Mirror 93, 08-09/2010

Demand tracks available supplies

Despite some intra-day volatility, markets have spent the summer within relatively narrow trading ranges.  Values for scrap on a freight parity basis seem to have levelled out with no particularly earnest pursuit evidenced, geographically anyway. Whether this is a sign of a decrease in demand or more realistic buying by some market participants is a question that can’t be answered in the short term. Don’t misunderstand: demand has been in line with available supplies, with some forward buying in respect of late-year order expectations on the part of consumers; but the disparate values evident earlier in the year seem to have gone by the wayside. We should get a fairly clear picture whether this is a short- or long-term phenomenon in the coming months.

Metals prices yet again seem to be determined more by currency fluctuations than by fundamental factors, and that’s something we can likely anticipate at least for the near term.

We are in the process of putting together an interesting program for our meetings in Brussels and we will keep you advised as we finalise this.

Robert Stein
Alter Trading (USA)
President of the Non-Ferrous Metals Division
23rd of August 2010

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