Transcript Presentation

The Middle East and China Recycled
Metal Market Analysis
China International Recycling Conference & Exhibition 2014
Presented By: Mr. Leo Ma (ALA GROUP)
September 24, 2014
Presentation Contents
Introduction to ALA Group
China – Market Analysis
The Middle East – Market Analysis
The Way Forward
Company background
Founded in 1990
Headquarter: Dubai, UAE
Network: Around the Globe
Products: Copper, Aluminum, Brass, Lead, Zinc, Nickel and SS
Affiliates:
More About The Renowned Recyclers
A well-known name in the Middle East / India / Pakistan with offices
and yards in strategic locations of Africa Regions, UK, USA and CIS
Exports scrap to these and other Asian countries, including China,
Korea, Taiwan, Japan, Thailand and Malaysia
Involved in all aspects of trading (processors / importers / traders)
More About The Renowned Recyclers
Continuously expanding in size
Employs state-of-the-art technology
Owns smelting recycling copper and lead alloys
Deals in ferrous and non-ferrous metals
Integrity and
Accountability
Healthier way
of doing
business
Reliability
ALA
GROUP
High Quality
Innovation
Accessibility
24x7
We value…
China – Market Analysis
World vs. China
World’s largest consumer of copper, lead, zinc and steel, among other
ferrous and non-ferrous metals
Current foreign supply dependency of mineral raw materials of
copper, Iron ore, lead, and zinc higher than 60%, 50%, 40% and
15% respectively
In 2010, China imported 7.21 million tons of nonferrous metals,
including 4.36M tons of copper containing scrap and 2.85M tons of
aluminum containing scrap
Source: Waste and recycling middle east
World vs. China
China - Operating
Environment
Infrastructure and mechanisms friendly towards movement of scrap
Metal recycling has industry status and formal policies
Government is addressing issue of fragmentation in the sector (since
setting targets in 12th Five-Year Plan)
Resolved towards creating a long-term, sustainable and eco-friendly
business model
Major metal recycling areas in China
Future Outlook
China anticipating a much faster scrap utilization growth over the
next few years
An improving global economy could possibly strengthen end markets
for steel and ferrous scrap
China will continue to expand its steel and copper capacity, and
production of both could grow this supports medium-term scrap
demand growth, in addition to a potential increase in scrap utilization
at steel mills and copper smelters/fabricators
CCIC role in metal scrap trade
Over the last 30 years, CCIC has become a comprehensive
one-stop service provider for international clients in the fields
of quality, safety, health and environmental protection. CCIC
has set-up a regional office in the Dubai (UAE) in 2008 and
we are proud to be a part of CCIC UAE. We thank them for
their efforts during the year and look forward to working
together in the future to strengthen the metal recycling
sector.
Middle East - Market Analysis
The Middle East – a rapidly
emerging market
BIR regional membership second only in size to Europe
UAE and Saudi Arabia established as regional centers of activity for
the sector
Egypt strong opportunity for future growth in demand for
steel, though per capita use (95 kilograms) is lower as compared to
the world average*
ME– factors driving growth
of industry
Oil and gas investments and its revenues
Government spending on local infrastructure
Qatar’s FIFA World Cup 2022
Direct foreign investments
Focus on industrialization
Shorter transit routes to India and China
ME– factors driving growth
of industry
Easy access for traders to meet and trade in the region
Excellent aviation network
Oil resources
Dubai to host Expo 2020, encouraging various new projects and
initiatives, driving growth not only in the UAE but the whole of the
Middle East
ME– factors driving growth
of industry
Both the UAE and Saudi Arabia have established themselves as regional
centers of activity for the sector, with industry sources estimating total
volume for the UAE at five million tonnes per annum, closely followed by
Saudi Arabia with three million tonnes.
The UAE also refines and re-exports some 70,000 to 100,000 tonnes of
non-ferrous metals every month, with an annual turnover of US$4.5 billion.
Source: 2011 Green Middle East report: https://go-green.ae
UAE – Crossroads between
east and west
A major hub for the global multi-billion dollar scrap metal recycling
industry
Important recycling events held in Dubai every year to explore more
opportunities
Recycles 5 million tonnes of scrap metal annually*
Strategic location for importing scrap from Africa and Europe
refining and re-exporting it within the region, into China, India and
Pakistan
Cheaper energy prices propelling the trade (aluminum production is
very competitive)
UAE – Market Trends
Domestic finished steel consumption in 2012 was at 8 million mt,
down from 10 million mt in 2008
Boost in demand expected in 2015 due to recovery in medium-term
for housing, infrastructure, rail network, oil & gas, energy and
shipbuilding (Expo 2020 win)
UAE – Opportunities
Easy banking solutions and tax-free income
Boom in construction industry and overall infrastructure development
Idea of ‘zero waste’ is pertinent to every industry
4th BMR International
Conference
we would like to take this opportunity as board
members of the BMR, we would like to invite you
to attend 4th BMR International Conference, a
leading conference on metal recycling organized
by Bureau of Middle East Recycling
Date
City (country):
27 February 2015 - 28 February 2015
Dubai (United Arab Emirates)
THANK YOU