US UBC recycling rate up 1.2 percent not as much as hoped

摘要

Washington, Sydney--The 1.2 percent increase in the US aluminum used beverage can recycling rate was a positive after seven years of declines, but the more than 10 dollars/lb increase in UBC prices in 2004 versus 2003 left some market players thinking the rate should have been higher. A total of 51.5-bil cans containing 1.518-bil Ib of aluminum were recycled in the US in 2004, according to statistics released May 20 by the Aluminum Assn, Can Manufacturers Institute and Institute of Scrap Recycling Industries. The result represents a recycling rate of 51.2 percent of the 100.5-bil cans produced in the US in 2004 and marked a 1.2 percent increase over the 2003 rate, the first rise in the rate since 1997, when the recycling rate was 66.5 percent. A broker had expected the recycling rate in 2004 might gain as much as 2-3 percent over the 2003 rate, since can collectors and recyclers would have had the incentive of higher prices due to the spike in London Metal Exchange prices last year. UBC prices increased to a yearly average of 654/ib, delivered Midwest, in 2004 from a 2003 average of 54 dollars, based on the Platts weekly assessment. "All that great pricing last year only got us another 1 percent," the broker said. "I guess it's just not being recycled--a sad fact." Most market players do not believe many UBCs are moving offshore, either.