BIR released the latest report "World Mirror of Non-Ferrous Metals May 2014"

The Bureau of International Recycling (BIR) report highlighted various macro events that took place during the month and affected the non-ferrous metal recycling industry.

The crisis in Ukraine is negatively affecting economic growth in the Nordic countries, according to the report. Deteriorating relations with Russia impede the progress of trade in these regions. According to BIR, the impact will be more severe for Finland than for any other country. Processors in the Middle East region have also been hit hard by the crisis.

The growth in scrap consumption in Russia has prompted the search for imports from neighboring countries. The country currently levies VAT on importers, but there is a possibility that VAT could be removed soon. High demand for copper scrap is currently in Europe. At the same time, stainless steel scrap improved prices in France. However, the scrap metal trade has weakened in Germany.

BIR has welcomed the new government of India, which has come to power. There were also positive developments in the country, such as the resurgence of the Indian currency and the flow of millions of dollars from foreign institutional investors.

BIR notes that economic activity has slowed in Brazil. Novelis' expanded capacity supported the country's scrap prices. Strong demand for raw materials and supply shortages helped stem the fall in domestic scrap prices. Economic reforms in Mexico have forced many scrap recycling owners to scale back.

China plans to implement a reduction in VAT on scrap processing. Meanwhile, South Africa has proposed draft amendments to the country's export policy on ferrous and non-ferrous scrap. Scrap prices may remain under pressure in New Zealand as well ahead of winter.