EU’s Cu scrap exports up by 20pc; Al up by 40pc

The robust recovery of economic activities in Asia spurred European Union’s non-ferrous scrap exports in June. The region’s aluminium scrap exports in June increased to 95,733mt, up by 40pc; while copper scrap exports rose to 55,450mt, up by 20pc from a year ago.

Copper

Germany led copper scrap exports from the European Union in June with shipments of 12,382mt, up by 10pc from a year ago, but down by 14pc from May. Spain and Italy followed with exports of 8,890mt and 7,811mt, respectively. 

In H1 (Jan-July), EU’s copper scrap exports increased to 394,425mt, up by 44pc from 273,313mt in the prior year period.

China was the largest importer of copper scrap from the European Union with imports of 25,127mt, up by 54pc from June 2020, while imports rose marginally from May. Indian and Pakistan ranked second and third with imports of 7,585mt and 4,413mt. Imports from Hong Kong and Malaysia also increased by 17pc and 16pc, respectively.

Copper scrap from Europe is preferred by Asian buyers as it is available at a discount to scrap from other destinations, particularly the US. Though scrap from the US is much cleaner and hence the premium, European-origin scrap with attachments can be easily processed at low-cost labor-intensive units in Asia. Many units in India and Pakistan process imported scrap to produce ingots which are exported to countries like China, Japan and Korea.  

Aluminium

Germany was the top exporter in June with shipments of 20,296mt, followed by Belgium with exports of 15,983mt and Netherlands 11,678mt. Exports from France and Spain also increased in June.

In H1 (Jan-July), EU’s aluminium scrap exports increased to 595,050mt, up by 62pc from 367,251mt in the prior year period.

Indian and Turkish aluminium scrap imports from the EU increased both from the prior year as well as the prior month. Higher demand for aluminum alloys by auto and automobile component makers supported imports. Also, healthy demand for aluminium ingots and alloys from Chinese buyers, who have limited access to imported aluminium scrap could support imports into countries like India and Pakistan, where scrap is processed into ingots and exported.