Recent sharp volatility in copper and zinc prices on the London Metal Exchange (LME) has nearly halted trade in copper and brass semi-finished products in Europe, the president of Europe's leading scrap recycling body said.
Copper and zinc prices soared to respective peaks of $8,800 and $3,970 a tonne in mid-May but have fallen back by some 25 percent each on concerns that interest rates may rise and slow down demand.
"Decrease of prices over the last 10 days has practically stopped trading in the last week or so," Fernando Duranti, president of the Bureau of International Recycling (BIR), told Reuters in a telephone interview on Wednesday. "Everybody has been hit by volatility - copper consumers and scrap users," said Duranti, who is also managing director of non-ferrous metals trading company Leghe & Metalli.
He said copper and brass product makers were sitting on their hands amid uncertainty about the raw material market development with some expecting the prices to pick up soon and others forecasting a further correction.
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