Qurius UK sponsors first Secondary Commodities Market Conference
Read our live updates from the first Secondary Commodity Markets Conference below:
Welcome to the first Secondary Commodities Market Conference. Sponsored by Qurius UK, Blue and SCA Recycling.
With Lots of delegates arriving at SCMCon, the morning kicked off at 9.30am with opening remarks by Paul Sanderson, editor of SCM magazine.
The total GDP of the whole world is $62 Trillion according to the keynote speaker, Nick Parsons, Head of Marketing Strategy at National Australia Bank. The US accounts for a quarter of global GDP. Growth has been lower than anticipated - but growth nonetheless. Asia's output is 57% higher than at start of recession and nine of the ten top fastest growing economies are in Asia. There is no global recession - just Europe/US. The UK is sitting in the relegation zone of output growth just ahead of countries that had major calamities (earthquakes etc). China's gdp has grown 10% per year for 10 years. China has 8% growth - the last time UK had 8% growth was probably when we invented the Spinning Jenny!
Nick Parsons on the global economy
Parsons went on to explain that the current recovery is expected to lag behind previous recession recoveries as there is no impetus for recovery. He is not excluding the possibility of a double dip recession for UK but it could turn out better. The world economy is going to grow nicely though. Banks won't be lending for property as they already got too much. One of the main drivers for growth is commodities. Overall a fascinating overview of the world economy and where it is heading by Nick Parsons.
Next on to present was Duncan Frearson - Director of Scrap-Ex, talking about the role of a commodity marketplace. Scrap-ex brings buyers, sellers and mid-traders together to increase size of trading circle and generally improve trade. Scrap-ex broker board lists are available along with wanted materials. It is a members-only environment designed to bring traders together.
The broker board will evolve into a trading platform to provide a real-time live market for commodities traders to transact. There is also a trading platform iphone app: "if it's not in your pocket how can it be accepted by the industry?" Frearson explains.
The delegates take a break for coffee before resuming for Peter Norfolk of Freight Investor Services on steel and scrap swaps and what this means for SCM. Quite complex - you may need to look this one up! The presentation by Peter Norfolk of FIS was very specialist and has been well received by the audience at SCMCon - despite being interrupted mid-flow by a fire alarm!
At 11.20am the plastics session commenced - starting with Martin Marron, MD of Biffa Polymers who discussed how the industry is coping. Marron didn't fully agree with Nick Parson's doom and gloom prediction for UK - he is seeing plenty of growth. Biffa Polymers can recycle 700,000 tonnes of materials per annum.
Let's talk plastics: Martin Marron of Biffa Polymers
Half of the 1.5 million bottles used in UK households are being recycled according to Biffa Polymers. Martin Marron went on to show a video of a Biffa Polymers plant which is run by enwis) software from Qurius UK.
The next speaker is Joe Bisland, Commercial Director of Eurokey Recycling to gave a more global view of the market. According to Bisland, only 10% of UK population would wash their yogurt pots before recycling - close to 100% in Germany - yuck! The days of getting a good price for poor quality materials has gone - there's no point in doing recycling if you can't turn it into something you can actually sell.
Paul Rendle-Barnes, Senior Development Manager at Avanti Environmental was next to take the stage, providing an interesting insight into the value to be gained for industrial plastics recycling.
The session ajourned for lunch, before returning at 1.40pm when Ian Hetherington, DG British Metals Recycling, takes the stage to kick off the metals session with his presentation: 'What are the challenges in the UK metal recycling market?' The annual turnover in UK metal recycling is around £5bn - relatively static - 65% is exported (13m tonnes in 2009). The UK scrap metal market is depressingly small and there are some very real threats to export facing the metal (and other products) trade. Protectionist export restrictions are imposed to drive down price, in addition to admin burdens which impede trade in 'undesirable' metals. Ian is followed by a presentation by John Crossland, Commercial Manager Non Ferrous, Van Dalen, who tackled the question, 'Will new Chinese import retstrictions make a difference to the metal recycling sector?'
The 2.30pm paper recycling session was kicked off by Simon Barnes, BDM for sponsors, SCA Recycling. Simon asserts that the cost of materials (paper) vs cost of recycling is in the recycler's favour and that waste paper is a resource. Peter Dyer, MD of Failand Paper Services follows on to talk about the requirements of international buyers of paper. The future for international trade of secondary paper fibre is positive if it's done properly.
Paul Sanderson closes the session by leading questions on the paper recycling trade.
Paul Sanderson leads paper recycling Q&A session