Blaming the credit crunch, equities collapse, and expected slowdowns in the economy, Purchasing.com recentlyÃ‚Â highlighted the weakening demand for nonferrous metals. Taking a cue from Tom Petty, it seemsÃ‚Â nonferrous metals are now free fallin’. To be more precise, nonferrous metals recently went into a freefall as prices began to collapse. Similarly, global demand is expected to collapse well into the next year, with demand predicted to downturn for the next 12-18 months. The scrap metals industry, with its reliance on nonferrous metals,Ã‚Â should also feel the heat.
Analysts are currently changing forecasts for the worse, and Purchasing.com notes that spot copper fell 46 percent from its 2008 peak on Friday. Zinc, with a 50 percent fall, dropped even more. Meanwhile, nickel fell 63 percent and aluminum, 33 percent.
As the drop in the market occurs, some European countries worry that a recent EU carbon law will further hurt the nonferrous metals industry, alongside other high-energy sectors. Italian industry body Assomet, which represent Europe’s second-largest nonferrous metals industry, “said the EU should take measures to reduce the impact of rising CO2 emission costs on electricity prices in order to prevent ‘carbon leakage’ of industries from Europe,” according to Forbes. We’ll see where these complaints lead. More importantly, we’ll continue keep a close eye on these startling declines in the nonferrous metals industry!