However, falls in the copper price are adding to pressures in the metals sector generally and are also not helping with the value of waste electrical and electronic equipment. With further price reductions for copper today (23 November), the markets are at a six year low for the material. And, with low prices for other metals, not only are recyclers suffering, but local authorities and WEEE compliance schemes are also facing lower income.
However, in contrast to difficulties in 2007/08 and 2010, metals recyclers say that at least orders are obtainable for scrap copper and other grades, although the threat of losses in the short term could hit some dealers if the price weakens further.
To cope with the downturn in markets, metals recyclers say that they are looking at various ways to reduce costs. Many are already running with a reduced workforce, one recycler told letsrecycle.com.
Opening hours
Others point to businesses which are now not opening on a Saturday or reducing opening hours with some of the larger businesses, including European Metal Recycling (EMR), making changes to the number of yards operating – the company is already reshaping its business in south London.
Other firms have said that the implementation of the ban on cash sales has meant the loss of some material, with very small collectors put off bringing in metal.
In the car recycling sector, values of used cars, continue to lag behind or run in par with prices for light iron grades, largely because of the amount of waste and non-metallic materials within the car.
Positive
The one potentially positive consequence brought about by lower prices, according to observers of the ferrous and non-ferrous market, is that the material buyers will be able to afford scrap for use in metal making.
This view was amplified by William Schmiedel of Sims Metal Management US at the end of October when he gave his report as president of the Bureau of International Recycling’s ferrous division to its autumn conference.
Mr Schmiedel said that billet exports from China at “ever-decreasing prices” were the cause of the low ferrous scrap values. “The good news,” he added, “is that the lower prices we are experiencing today should enable our customer base to again start to look at ferrous scrap as a reasonable, viable and economic option.”
Since then Sims has itself announced plans to continue with further restructuring of the business.
WEEE
The lower metals prices continue to impact on civic amenity sites and the WEEE sector. Operators of WEEE treatment facilities are having to pay less for the scrap which they receive under the WEEE system from compliance schemes. This is having an impact on some of the compliance schemes who are losing income as a result. Some schemes could be receiving considerably less income for the scrap than has been the case in the past.
However, the sector suggests that this is not having a noticeable impact on the value of WEEE recycling evidence – there is thought to be little scope in the market for treatment facilities or compliance schemes with surplus evidence to charge more for the evidence because of the changes to the WEEE regulations.
DIARY DATE: Next year will see the 2016 CARS and Metal Recycling Event held at Donington Park Circuit, Derby from 13-14 July. For more details click here.
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