COPPER AND COPPER ALLOYS SCRAP SUPPLY SURVEY IN THE EUROPEAN UNION

Transcription

1 COPPER AND COPPER ALLOYS SCRAP SUPPLY ROPEAN UNION APRIL, 213 PRESENTATION

2 Survey Focuses On Industry Structure and Copper Scrap Flow SOURCE SCRAP MARKET (SUPPLY) DEMAND End of Life Vehicles Construction and Demolition Industrial Waste WEEE Solid Municipal Waste Direct collection Small/medium sized traders Exports / Imports Exports / Imports Exports / Imports Scrap recyclers Big traders Smelters, semi- and final production PART ONE INDUSTRY STRUCTURE Sample of interview partners, segments of Trading Companies, main characteristics PART TWO COPPER SCRAP FLOW Cppper scrap flow (exports and imports) incl. data consistency, estimated copper content 2

3 We Have Used Both Primary and Secondary Data METHODOLOGY SOURCE SCRAP MARKET (SUPPLY) DEMAND End of Life Vehicles Construction and Demolition Industrial Waste WEEE Solid Municipal Waste Direct collection Small/medium sized traders Exports / Imports Exports / Imports Exports / Imports Scrap recyclers Big traders Smelters, semi- and final production PRIMARY DATA Standardized phone interviews (49) Expert phone interviews (9) SECONDARY DATA EUROSTAT, COMTRADE ORBIS Database Various papers, websites 3

4 AGENDA Part One: Industry Structure Sample of Interview Partners Segments of Trading Companies Main Characteristics of Trading Companies Part Two: Copper Scrap Flow Exports and Imports Estimated Copper Content This document was created for the exclusive use of the International Copper Study Group.

5 Primary Research Has Focused on 1 Key EU27 Countries INDUSTRY STRUCTURE - SAMPLE INTERVIEWS AVAILABLE ADDRESSES OF DIRECT COLLECTORS, SCRAP RECYCLERS AND TRADERS TOTAL: 74 REASONS FOR SELECTION Austria 2% France 4% Netherlands 5% Belgium 5% Sweden 2% Spain 5% Denmark 1% Italy 7% Germany 13% United Kingdom 42% United Kingdom Italy Belgium France Sweden Irish Republic Poland Czech Republic Finland Bulgaria Romania Norway Germany Spain Netherlands Austria Greece Slovakia Hungary Denmark Portugal Luxembourg Estonia Slovenia Number of Addresses UK and Germany made up for more than half of available addresses Languages Applied Interviews were conducted in English, German, French and partly Spanish. Success Ratio Success Ratios were extremely high in Austria, Belgium and partly in Denmark Percentage of EU27 Exports UK, Germany and the Netherlands export 67% of total copper scrap volumes to extra-eu countries Cyprus Latvia Malta Quelle: Eurostat Data Explorer 5

6 Selected 1 Countries Made Up 9 % of Extra EU27 Scrap Exports INDUSTRY STRUCTURE - SAMPLE EU COUNTRIES RANKED BY TONNAGE COPPER AND COPPER ALLOYs EXPORTS: TOTAL 211: TONS 45, 4, 412,819 35, 3, 279,545 25, 2, 15, 1, 5, 194,227 1,998 81,398 7,33 48,789 37,665 7,845 5,42 Source: EUROSTAT Data Explorer (EXTRA EU TRADE_EU xls) 6

7 We Contacted 137 Copper Trading Companies 53 Were Willing to Participate INDUSTRY STRUCTURE - SAMPLE TOTAL NUMBERS 53 COMPANIES INTERVIEWED 84 NO INTERVIEW POSSIBLE EXAMPLE GERMANY 2 21 German companies interviewed German companies not willing to participate SE 1 49% = RESPONSE RATE UK 4 2 BE NL DK DE 7 6 AT FR 1 IT ES 7

8 AGENDA Part One: Industry Structure Sample of Interview Partners Segments of Trading Companies Main Characteristics of Trading Companies Part Two: Copper Scrap Flow Exports and Imports Estimated Copper Content

9 S BL N BU AZ A AJ AR BV AI X CD V AA BE BR AM O H AQ AH Y BH W E Z AB BF BM BZ T AV M BX BY BK CB AX AG BD AF 8 of 41 Trading Companies Sell More Than or Equal To 2. Tons of Copper Content INDUSTRY STRUCTURE - SEGMENTS COMPANIES INTERVIEWED TOTAL: 53 SCRAP (COPPER CONTENT) TRADED IN TONS PER ANNUM 25, 8 LARGE TRADERS 2, 12, 23% 41, 77% PROVIDING VOLUME NOT PROVIDING VOLUME 15, 1, 5, 33 SMALL AND MEDIUM-SIZED TRADERS 9

10 Direct Collectors With Direct Access to Scrap Sources Made Up 7% of Our Sample INDUSTRY STRUCTURE - SEGMENTS SCRAP MARKET (SUPPLY) (3 roles collectors, recyclers, traders NOT mutually exclusive) DIRECT COLLECTORS Small & medium traders: < 2. tons p.a. Scrap Recyclers Large traders >= 2. tons p.a. Number: 39 (out of 53) Number: 33 (out of 53) Number: 3 (out of 53) Number: 8 (out of 53%) Share: 74% Share: 65 % Share: 57% Share: 16% Cablo Metall (DE) CMR International (BE) Electro Recycling Nord (DE) ownership AURUBIS Scholz Recycling (DE) Fritz Kutting (AT) Uniscrap (DK) ownership SCHOLZ RECYCLING Galloo NV (BE) Belgomet (BE) Motormetal (BE) Retra NV (BE) Van Heygen (BE) ownership GALLOO GROUP 1

11 AGENDA Part One: Industry Structure Sample of Interview Partners Segments of Trading Companies Main Characteristics of Trading Companies Part Two: Copper Scrap Flow Exports and Imports Estimated Copper Content

12 Relationships to Supply - Demand AND Economies of Scale: Perfect Strategic Position INDUSTRY STRUCTURE - CHARACTERISTICS SCRAP MARKET (SUPPLY) (1) Exports / Imports Exports / Imports Exports / Imports Direct collectors Small & medium traders: < 2. tons p.a. Scrap Recyclers Large traders >= 2. tons p.a. Number: 39 (out of 53) Number: 33 (out of 53) Number: 3 (out of 53) Number: 8 (out of 53) Share: 71% Share: 65 % Share: 57% Share: 16% Main Characteristics Relationships to clients Logistics and substantial scrap yards to absorb scrap from various sources Sell to small & medium sized traders Relationships to big traders and/ or smelters Trade within EU Relationships to smelters and/or or large traders Tend to specialize on certain products (e.g., cars, cables etc.) Relationships to foreign large traders or smelters Trade outside EU (due to scale and negotiation power) Main Assets Industry Scrap Relationships are key Private Households Defined by local communities Main Asset: Machines for dismantling (need for economies of scale!) Main Asset: size, access to shipping 12

13 Yard Size Does Not Always Correlate with Volume Due to Different Business Models INDUSTRY STRUCTURE - CHARACTERISTICS VOLUME SCRAP COPPER CONTENT AND SCRAP YARD SIZES in TONS / SQUARE METERS TONS 16, 14, 29 interviewees provided both volume AND scrap yard size SQUARE METERS 15, 125, 12, 1, 1, 8, 75, 6, 5, 4, 2, 25, *: One outlier with 3. square meters removed from sample, companies that either not provide scrap yard or volume are not included 13

14 E-Motors Are the Only Product For Which Size of Business Plays a Key Role INDUSTRY STRUCTURE - CHARACTERISTICS SCRAP MARKET (SUPPLY) Exports / Imports Exports / Imports Exports / Imports Share in % = Number/ All Contacts Direct collectors Number: 39 of 53 Share: 71% Small & medium traders: < 2. tons p.a. Number: 33 of 53 Share: 65 % Scrap Recyclers Number: 3 of 53 Share: 57% Large traders >= 2. tons p.a. Number: 8 of 53 Share: 16% PRODUCTS % = Number / interviewees in segment % = Number / interviewees in segment % = Number / interviewees in segment % = Number / interviewees in segment AVER- AGE High Grade Cable 32 of 39 82% 32 of 33 97% 25 of 3 83% 7 of 8 88% 87% Low Grade Cable 28 72% 26 79% 23 77% 5 63% 72% E-Motors 25 64% 22 67% 21 7% 8 1 % 75% Brass 2 51% 18 55% 15 5% 4 5% 51% Radiators 24 62% 22 67% 16 53% 3 38% 55% 14

15 Recyclers Use Their Sizes and Export Options to Strengthen Their Negotiation Power INDUSTRY STRUCTURE - CHARACTERISTICS Evidence of copper recycling activity No evidence of copper recycling activity TOP RECYCLING COMPANIES IN EU 27 (NACE CODE 3832 RECOVERY OF SORTED MATERIALS*) BY THEIR TOTAL REVENUE IN 1. US DOLLARS European Metal Recycling Scholz Recycling AG TSR Recycling Ecore B.V. Interseroh Management Van Gansewinkel Groep Stena Recycling AB Guy Dauphin Environment Der Grüne Punkt Kuusakoski SIMS Group UK Limited Consorzio Nationale Servizi Societa Nord-Schrott GmbH Reukema Metal Group Johnson Controls Recycling Purfer Veolia Proprete Stena Metall A/S AFM Recyclage Bicomet S.P.A. Paprec France (Prevost) Sims M+R GmbH Duesmann & Hensel Stena Recyclling A/S H.J. Hansen Dansk Retursystem Source: Websites of companies, ORBIS database *Scholz, TSR and Interseroh not included 5, 1,, 1,5, 2,, 2,5, 3,, 3,5, 15

16 Recyclers, Traders and Collectors Face Highly Consolidated EU Smelter Industry* INDUSTRY STRUCTURE - CHARACTERISTICS RECYCLING CAPACITY in TONS TOTAL CAPACITY SE New Boliden FIN New Boliden 2 Atlantic Copper 35. ES Umicore Metallo Chimique 138. BE Aurubis 272. DE Brixlegg 233. AT Kghm PL Source: Muchova Lenka, Eder Peter, Villanueva Alejandro: End-of-waste Criteria for Copper and Copper Alloy Scrap: Technical Proposals, JRC Scientific and Technical Reports, p. 27. * semis-fabricators are potential clients in addition to smelter industry 16

17 AGENDA Part One: Industry Structure Sample of Interview Partners Segments of Trading Companies Main Characteristics of Trading Companies Part Two: Copper Scrap Flow Exports and Imports Estimated Copper Content

18 China Gets 75% of Total EU-27 Copper Scrap Exports COPPER SCRAP FLOW - EXTRA EU TRADE COPPER SCRAP GROSS EXPORTS FROM EU-27 TO WORLD 211 TOTAL: TONS 1,2, COPPER SCRAP GROSS IMPORTS TO EU-27 FROM WORLD 211 TOTAL: TONS* 97 % OF TOTAL 8% OF TOTAL 1,2, 1,, 75% 1,, 8, 8, 6, 6, 4, 4, 2, 2, Source: EUROSTAT (HS Code 744 Copper waste and scrap), all countries contributing more than 1 % to either export or import volume 18

19 UK Is the Only Big Exporter Country Not Only Relying on China as Major Partner COPPER SCRAP FLOW - EXTRA EU TRADE EU COUNTRIES RANKED BY ANNUAL TONNAGE COPPER AND COPPER ALLOYs EXPORTS: TOTAL 211: TONS PARTNER COUNTRIES 45, Other 412,819 Hongkong 4, India China 35, 3, , 2, 15, 1, 5, Source: EUROSTAT Data Explorer (EXTRA EU TRADE_EU xls) 19

20 Differences in Export and Import Reports Lead to Inconsistent Picture COPPER SCRAP FLOW - INTRA EU TRADE Exports from Germany (Exporter Germany) Imports from Germany (Importers) COPPER SCRAP GROSS EXPORTS VS. IMPORTS 211 (TOTAL EU27, TONS) 1,4, 1,2, 1,, 8, 6, 4, 2, 1,349, = -8% of ,465,33 3 GROSS EXPORTS FROM GERMANY 211 (GERMANY, TONS) 12, 1, 8, 6, 4, 2, TOTAL EXPORTS TOTAL IMPORTS Source: EUROSTAT (HS Code 744 Copper waste and scrap) 2

21 Interviews and Eurostat Information Shed Some Light on Origin of Inconsistencies COPPER SCRAP FLOW - CONSISTENCY (INTRA-EU) We found four basic explanations for deviating export/import figures in the EU Exporting shipper (in country of origin) does not know ultimate country of destination and fills in country where copper scrap is stored. Importer however, fills in country of origin and NOT country of storage. (This argument is not officially confirmed by EUROSTAT but data structure shows some evidence of this happening). The importing country reports less systematically than the exporting country and vice versa. (Respective hints were given in some interviews) When company is below report limit the country would estimate their volumes. Approach to these estimates differs from country to country. (Argument officially by EUROSTAT) The definition of copper scrap (HS code 744) may differ from country to country. (Argument confirmed by EUROSTAT) 21

22 AGENDA Part One: Industry Structure Sample of Interview Partners Segments of Trading Companies Main Characteristics of Trading Companies Part Two: Copper Scrap Flow Exports and Imports Estimated Copper Content

23 R BL U N BU AZ K A AJ AR BV L BA BQ F AI AO BG AT X V G I AD AA BE BR AK AM O 2 Sources We Used for Estimates Hint at Approx. 3% Copper Content in Exports COPPER SCRAP FLOW - COPPER CONTENT FIRMS RANKED BY COPPER AND COPPER ALLOYs TRADES COPPER CONTENT in TONS 25, LARGE TRADERS SCRAP EXPORTS AND IMPORTS TONS / VALUE in 1. 1,4, 4,, 2, 1,2, 3,5, 15, 1, ANNUAL SALES 687. TONS approximately 5% sold within EU Remain 35. TONS EXTRA EU EXPORT 1,, 34% (46. TONS) EXTRA EU EXPORT 8, 6, 3,, 2,5, 2,, 1,5, 5, 4, 2, 1,, 5, 85% (385. TONS) Exports Imports** *EUROSTAT (HS Code 744 Copper waste and scrap), Prices: 8 US $ per ton copper ( steel: 8 US $/ton for carbon steel ( 23