Global Non-Ferrous Metals Market: Policy Shifts and Supply Chain Disruptions

(Summary of the BIR World Mirror on Non-Ferrous Metals – July 2025 Issue)

General Overview: A Period of Widespread Uncertainty

According to the latest report from the Bureau of International Recycling (BIR), the global non-ferrous metals market is navigating a period of significant uncertainty. Activity levels have been dampened by summer holidays and policy changes from major economic powers, a sentiment shared by experts and contributors to the “BIR World Mirror on Non-Ferrous Metals” July 2025 issue.

Mr. Arnaud Brunet, Director General of BIR, stated, “Policy unpredictability, especially from large economies like the U.S. and China, is creating substantial barriers for global trade flows. The market is facing an unpredictable business environment, forcing companies to constantly adjust their strategies.”

U.S. Trade Policy and Its Far-Reaching Effects

Policy decisions from the U.S. remain at the center of the uncertainty. One of the most significant developments is President Trump’s announcement of a 50% tariff on copper imports, effective from August 1. This decision, intended to protect the domestic copper industry, has raised concerns about potential raw material price hikes and supply chain disruptions for manufacturers reliant on imported copper.

Meanwhile, a more positive sign emerged from a joint statement by China and the U.S. to temporarily cut reciprocal tariffs for 90 days. This move has revived trade between the world’s two largest economies, at least for the time being.

These changes have created a domino effect on the market:

• Aluminum Scrap: Due to U.S. tariffs or domestic mills reaching capacity, more imported aluminum scrap originally destined for the U.S. is now being diverted to other markets. Mexico is becoming a new destination for these shipments.
• U.S. Secondary Aluminum Prices: Despite the shift in trade flows, secondary aluminum scrap prices in the U.S. have remained flat throughout the summer, largely due to ample supply from overseas.

Asia: New Regulations and Supply Chain Hurdles

Asia is also caught in the whirlpool of policy changes:

• Thailand Tightens Waste Management: Many recycling yards in Thailand have been forced to halt operations as authorities intensify inspections related to illegal waste dumping. This has particularly affected facilities handling e-waste and other industrial materials. On June 5, the Thai government officially announced a full ban on all e-waste imports. As a result, many containers heading to Thailand are being returned to their origin or diverted to alternative destinations, most notably Indonesia, despite questions being raised about its handling capacity and potential for future regulatory tightening.
• Malaysia’s Port Congestion Eases: After a long period of congestion, more buyers in Malaysia have now obtained the necessary SIRIM (Standard and Industrial Research Institute of Malaysia) approvals to import legally. This is helping containers to clear at Malaysian ports again, though under heightened oversight and stricter documentation requirements.

Europe and Russia: Material Shortages and Procedural Changes

In Europe, traders are grappling with material shortages:

• The Iberian Peninsula: A severe shortage of copper scrap has prompted local smelters to increase their prices to secure material and avoid production disruptions. Ms. Sofia Sanchez, a market analyst in Spain, commented: “The post-pandemic recovery in copper demand has outpaced scrap supply, forcing mills to compete more aggressively to maintain production.”
• The UK: Merchants have also reported a notable lack of available physical material, leading to tighter margins and more aggressive competition for supplies. Certain materials, especially those affected by environmental export restrictions, have become increasingly difficult to move.
• Russia: A major legal change has been the new VAT payment procedure for semi-finished copper products. The uncertainty surrounding how this new procedure will actually work has led to a market slowdown as producers seek clarification on the details.

These factors demonstrate that regardless of location, the global non-ferrous metals market is facing a series of challenges related to policy, environmental regulations, and fierce competition for supply. While material demand remains high, trade flows are being hindered by new barriers, creating a volatile and unpredictable market landscape.

According to: bir.org