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No. 04 | 2008
Feature
Recycling in the alps
Austria shows how packaging recovery works
News Analysis
M����� H���
New Chairman
of CEPI
S������ R���
Hedging against
commodity price risks
Opinion
G����� D���
WEEE from a global
point of view

Contents
Editorial 3
News 4
Feature | Different ways 8
Analysis | Risks in primary materials 16
Opinion | Graham Davy 20
Market | Survey of forecasts 22
Data | International markets 24
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2
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Editorial
Cheaper –
even without
competition?
Germany as a pioneer in packaging recycling
Whenever discussion turns to recycling packaging waste,
the word Germany often comes up. There was the birth-
place of the ‘Grüne Punkt’ (Green Dot) in 1990, which
has been adopted by many other countries in the meantime
and is considered the hallmark for recycling of household
packaging waste. In Germany, packaging recovery is
mainly organised by Duale System Deutschland AG – but
for how long is the question, as there is now a number of
competitors who are trying to capture shares in the market
from DSD.
Comparing German and Austrian systems
The fact that Germany is now experiencing stronger
competition within the dual systems is the result of appeals
by the Federal Cartel Office to create competition- friendly
structures. However, interestingly enough, this increased
competition does not seem to be making a big impression
on disposal costs, at least not in comparison with the
neighbouring country of Austria.
The CEO of the Austrian company ARA AG, Christian
Stiglitz, offers a startling explanation of the situation: in a
comparison of both countries, the Austrian system comes
off as the much more cost-efficient – even though, unlike
Germany, it is not competition-oriented or profit-seeking.
While disposal of a yoghurt carton costs 90 cents in
Germany, in Austria it costs less than half (Euro 0.42). “It
seems that although prices have been reduced over the
past few years, German systems should still be able to offer
even lower prices to their customers,” says Stiglitz in his article
for Recycling m@gazine. And a further point: in Germany,
the licence fee for disposal is only paid for two out of three
pieces of packaging; in Austria, it is at 90 per cent.
Hedging against price risks
A very different topic is the issue of how to effectively hedge
against price risks. This particularly affects traders in the
metals market and material recyclers. Between purchasing
the materials and selling the recycled products there is often
a period of several months – long enough for metal prices
to plummet on the stock market. For Recycling m@gazine,
Steffen Rapp of Deutsche Bank analyses hedging options
which offer greater protection against such price risks.
Yours sincerely
Stephan Peter Krafzik
Editor in Chief
spk@rbi.de
3

News
v A new system for detection of
banned polybrominated substances
ANNECY | Alcatel Vacuum Technology is introducing a new
technology to confirm the absence of polybrominated diphenyl
ethers (PBDE) and polybrominated biphenyls (PBB) in
electrical or electronic products using Ion Attachment Mass
spectrometry (IA-Mass). IA-Mass allows the analysis of
samples at a rate that is consistent with a manufacturing
environment. No special lab or highly trained technician is
required for IA-Mass. The IA-Mass instrument can be operated
by a regular technician and can take place alongside a
manufacturing line.
The RoHS (Restriction of Hazardous Substances) directive
and its application releases in all European States stipulates
that manufacturers must guarantee that these (PBDE,
PBB) restricted substances are not present in their products.
The number of samples requiring analysis will reach tens of
thousands each year. Based on AVT, the novel IA-Mass method
to check PBB and PBDE in plastics is extremely easy to
use and can obtain coherent results in line with those provided
with GC/MS in a greatly reduced time. z
v Oahu’s Recycling Numbers Down
HONOLULU | Residents of Oahu are recycling and reusing
less waste, further burdening the Waimanalo Gulch landfill.
State officials say the island kept 35 per cent of its waste
out of the landfill in fiscal year 2004 and 41 per cent in
2005. But that number dropped to about 31 per cent last
year when the island produced nearly 1.8 million tonnes of
solid waste and reused or recycled little more than 500,000
tonnes.
Officials say they are not sure why less waste is being diverted
from the landfill, although they add that large construction
or public works projects can push recycling numbers
down because much of their waste cannot be recycled
or reused. Environmentalists say Oahu residents need to
change their attitudes about recycling. z
4
v Call for urgent action on Ireland’s
waste is too late
DUBLIN | The Irish waste sector has warned that a call from
the Environmental Protection Agency (EPA) for ‘urgent action’
for Ireland to meet its EU 2010 landfill targets could be too
late. A published discussion paper entitled Hitting the targets
for biodegradable municipal waste: Ten targets for change
said that the outcome currently being achieved with biodegradable
municipal waste (BMW) is ‘less than satisfactory’.
The EPA’s National Waste Report revealed that 1.4 million
tonnes of BMW were landfilled in 2006. “As recycling rates in
Ireland are now reaching the best in Europe — averaging from
40 to 50 per cent — and substantial residual waste remains
to be managed, there is now an inescapable requirement for
waste to energy to reduce landfill rates to 20 per cent or less
in accordance with northern European norms.” Commenting
on the EPA report, Green Party environment minister, John
Gormley, said: “This report makes a very welcome contribution
to finding solutions to obstacles in our path.” EPA said
that 92 per cent of BMW was landfilled in 2006 and suggested
ten areas to encourage landfill diversion. z
v Nucor acquiring DJJ
CINCINNATI | Nucor Corp. has signed a purchase agreement
to acquire the stock of SHV North America Corporation,
which owns 100 per cent of the David J. Joseph Company
(DJJ), its related affiliates and real estate, for around
US-Dollar 1.44 billion. DJJ will be a wholly owned subsidiary
of Nucor Corporation and will maintain its headquarters in
Cincinnati.
DJJ is one of the leading U.S. scrap companies. The acquisition
of DJJ will bring a variety of benefits to Nucor. In addition
to DJJ’s scrap operations and expertise, its extensive
brokerage operations provide Nucor with global sourcing of
many key steel-making raw materials. DJJ’s rail services and
logistics capabilities will allow Nucor to leverage the largest
private railcar fleet in North America dedicated to scrap
transportation. The addition of DJJ to Nucor’s current scrap
processing capabilities will allow the company to process
about four million tonnes of ferrous scrap annually. z

Editorial
v Stena enters the Romanian waste
management market
BUCHAREST | The Swedish recycling company Stena has
acquired a majority stake in the Romanian company DTM
Waste Recycling SRL. The new name of the company after
the acquisition is Stena DTM SRL. The main focus of the
company’s operations will be the processing of hazardous
waste and recycling of waste from electrical and electronic
equipment in accordance with the European Union’s WEEE
directive.
Stena DTM SRL holds a dominant position in the field of
electronics recycling and processing of hazardous waste.
DTM Waste Recycling SRL was set up as late as 2006 and
has rapidly gained the respect of its customers by providing
a high and professional quality level of services in waste
management, a fast developing field in the Romanian economic
sector.
The new company Stena DTM SRL will have three operating
locations in Romania – Jilava, Ilfov County; Darmanesti,
Bacau County; and Apahida, Cluj County. Its headquarters
will be in Jilava.
The Stena Metall Group is the Nordic leader in recycling and
environmental services with operations in 250 locations and
12 countries. For more information on Stena Metall Group,
please visit www.stenametall.com/English z
v South Africa companies
called to recycle waste
JOHANNESBURG | Collect-a-Can has called for companies
to recycle their waste as a contribution to the 2008 Green
Year initiative. The purpose of the corporate challenge initiative
is to challenge organisations to embark on a formal
recycling campaign within their premises. It will involve educating
employees about separating waste at work and home.
“The corporate world can contribute a lot to the management
of waste; just think of all those people employed within
large public and private organisations and the amount of
waste that is generated daily. The impact on our environment
and landfills will be phenomenal if each of these individuals
recycles their waste from home and the office,” Collect-a-
Can Managing Director Funani Mojono said.
He said waste discharged in the environment has negative
impacts, while an integrated waste and environmental management
system curbs the quantity of waste discharged
through recycling. Cans are the most recycled form of packaging
in Africa, making a major contribution to preserving
the natural environment and tourist attractions.
According to figures from the Department of Water Affairs
and Forestry, more than 42 million cubic metres of waste is
generated in South Africa every year. The largest proportion,
42 per cent, is generated in Gauteng. z
5

News
v Converted Organics acquires United
Organic Products and Waste Recovery
BOSTON | Converted Organics Inc. (NASDAQ: COIN) has
acquired the assets of United Organic Products, LLC of
Gonzales, CA, as well as the assets, including the intellectual
property, of Waste Recovery Industries, LLC of Paso Robles,
CA. These acquisitions make Converted Organics the
owner of the proprietary technology and process known
as the High Temperature Liquid Composting (HTLC) system,
which processes various biodegradable waste products into
liquid and solid organic-based fertiliser and feed products.
Converted Organics has also acquired a leading liquid fertiliser
product line, as well as a state-of-the-art production
facility that services a strong West Coast agribusiness customer
base through established distribution channels.
In addition to acquiring assets and technology, Converted
Organics also announced that the employees of United
Organic Products, LLC will join Converted Organics. COIN has
also announced an agreement with Rhode Island Resource
Recovery Corporation to build an organic fertiliser facility. z
v ERP celebrates five years
and looks forward
BRUSSELS | The European Recycling Platform announced
that it has celebrated its five year anniversary — a milestone
in its evolution from an alternative to national compliance
schemes to a leading pan-European provider of WEEE
solutions. ERP can look back with satisfaction on the last
five years and is anxious to continue its strong growth trend
in the coming years. With over 1,200 members and over
250,000 tonnes of WEEE collected and treated, it is clear
ERP has launched a winning business model. Each of the
countries where they are directly operational boast impressive
numbers for tonnage collected. In Germany, for example,
ERP consistently collects over 4,000 tonnes of WEEE each
month. Even operations that are relatively new on the market,
such as ERP UK, collect upwards of 3,000 tonnes per
month. ERP’s market share ranges from 10 to 25 per cent in
each country. This growth has been overseen by their senior
management team, including Umberto Raiteri (CEO), Christophe
Pautrat (COO) and Nicola Magaraggia (CFO). z
6
v New CEPI Chairman:
Magnus Hall, Holmen CEO
BRUSSELS | The Confederation of
European Paper Industries (CEPI) is
pleased to announce the appointment
of Magnus Hall as the new CEPI Chairman.
Hall started his chairmanship in the
beginning of January and will hold the post until the end of
2009. Frits Beurskens, former CEPI Chairman, will keep the
Vice Chairman post for the next two years to guarantee a
smooth transition.
Hall has been the President and CEO of Holmen since April
2004. He holds an MSc degree in Industrial Management and
Engineering from Linköping Institute of Technology in Sweden
and was a Fulbright Scholar at Georgetown University in the
U.S. in 1985. He has been with Holmen since then and has
previously worked as VP Marketing and Sales and President of
the Publication Paper division. He is also Chairman of the Forest-Based
Sector Technology Platform (FTP) and Vice Chairman
of the Swedish Forest Industries Federation. z
v Divestment of Metso’s panelboard
business to Dieffenbacher finalised
NASTOLA | Metso has finalised the divestment of certain
Metso Panelboard operations to Dieffenbacher GmbH + Co.
KG, Germany. The panelboard business in Nastola, Finland,
and part of the MDF business in Sundsvall, Sweden, was
transferred to the ownership of Dieffenbacher on 1 February.
The transaction, whose value was not disclosed, does not
have a significant impact on Metso’s net income.
The panelboard operations in Finland with all its 60
employees and in Sweden with its 40 employees have
been transferred to Dieffenbacher GmbH. The refiner-related
operations in Sundsvall, Sweden, will remain in Metso’s
ownership and are not included in the transaction. After the
divestment, the panelboard business will not be reported as
a separate business line, but the unit will continue to supply
fibre preparation technology to the global MDF industry as
part of Metso Paper. Metso is a global engineering and technology
corporation with 2006 net sales of approximately €5
billion. z

Editorial
v BOV environment conference
to focus on waste management
MALTA | Bank of Valletta, in conjunction with the Malta
Business Bureau incorporating Malta Federation of Industry,
Malta Chamber of Commerce and Enterprise and Malta
Hotels and Restaurants Association, is organising a conference
entitled “Tackling waste together – turning obligations
into an opportunity”. The conference will be held on Wednesday
at the San Gorg Corinthia Hotel in St Julian’s. Bringing
together a panel of both international and local speakers,
the conference will address the issue of waste management
and legislation regarding commercial waste. The conference
will also discuss the opportunities available for reducing the
financial burden for industry, as well as EU funding opportunities.
As such, it is of particular interest to manufacturers
and other organisations involved in commercial activities.
Participants wishing to attend can apply through BOV’s
Customer Service Centre by e-mail to csc@bov.com, or from
any BOV branch. The price is €35/Lm15. The rate for MBB
members and students is €25/Lm10.73 (VAT incl.). z
v International stainless steel course
now available in Korean
BRUSSELS | The course, offered globally by the Internation-
al Stainless Steel Forum (ISSF), is a 16-module programme
covering all aspects of stainless steel. Its focus is to improve
the knowledge of all individuals and companies who work
with stainless steel. “Increasing knowledge across all levels
of staff ultimately improves productivity for companies and
minimises errors,” ISSF Secretary General Staffan Malm said.
Following agreement with the Korean Iron and Steel Association
(KOSA), six of the modules available via e-learning were
translated into Korean, enabling students to complete an
intermediate certificate in their local language. The e-learning
approach offers interactive flash presentations with images,
animations and video, almost halving the time of study
compared with the more traditional methods of study. “The
e-learning delivery method makes the learning rich, fast and
exciting,” says Malm. Sung Joon Pak from KOSA expressed
his delight at the arrangement and the ability for students to
enhance their knowledge of the material. z
v Caterpillar ® equipment systems to
be standard in Europe and Turkey
EUROPE | Caterpillar will equip most of its Core, Mining &
Paving machines with EquipmentManager and Product Link
— the remote asset management solution by Caterpillar. The
remote tracking and management system will be a standard
feature in the European and Turkish markets. Caterpillar
will deliver these capabilities as an integral part of most
core Caterpillar machines. Product Link will be available as
an option for Caterpillar machines. Caterpillar will phase in
EquipmentManager / Product Link throughout the first quarter
2008, after which Product Link will come as standard
equipment, along with a three-year subscription to Asset
Watch, the remote asset management portion of EquipmentManager.
This is a system that provides the full depth
of asset management, maintenance and health information
required by equipment managers to effectively manage their
fleets. EquipmentManager is a secure, web-based application
that uses key indicators from equipment such as hours,
location and diagnostic codes. Combined with powerful
tools such as mapping, maintenance scheduling and troubleshooting
instructions, EquipmentManager quickly sorts
through machine data to identify events that require attention
and delivers information in a meaningful and actionable
manner. Using satellite technology, Product Link is the hardware
that enables information flow between on-board systems
and the web-based application. The remote management
system provides machine location and hours as well
as time and geo-fencing capabilities. z
USED MACHINES FOR SALE
Eldan HG129 granulator
Year 2000, 90kW without control box
recently renovated € 40.000
Rapid GK 1000
75kW without control box € 15. 000
Well maintained paper
shredder BOA AG 550-100
55kW with control box € 28.000
ARP– ARP scandinavia.com
Telefon: +45 9823 3511
jf@arp-scandinavia.com,
www.arp-scandinavia.com
7

Feature | Separation System
Different ways
Outstanding performance by Austrian’s packaging recovery system
Since their foundation, the recovery systems in Austria
and Germany developed in parallel and were role models
for most recovery systems in other European countries.
However, a few years ago they began showing diverging
development. While the Austrian system for the most part
is acting the same by still following the principles of non-
profit, the German system has chosen another path to fol-
low. Instead of the non-profit orientation with sustainable
low prices, a profit-oriented competition of international
waste groups fight for customers.
Furthermore, the German government installed a deposit
system for disposable beverage packaging in 2003 which
failed completely to reach the goal of promoting reusable
packaging. These two major developments led to different
results for customers, consumers and the environment.
The Austrian Solution
“Since the beginning of the ARA System close cooperation
with all stakeholders was one of the major facts for our success,”
says Christian Stiglitz, CEO of the Austrian ARA AG.
8
Christian Stiglitz
“For us it was clear that sustainable change of behav-
iour was only possible when all the involved groups where
willing to contribute their share. We invested a lot of effort in
educating trade, industry an municipalities affected by the
Austrian Packaging Ordinance. we also spent a lot of time
searching for strong partners in waste management. Last but
not least the consumers needed to recognise the purpose
and advantages of separating packaging and to be trained
on how to collect it properly.”
This experience was reached by looking at the already
existing collection systems in Germany and France. But this
wasn’t the only lesson learned. The Austrian legislators also
not only analysed already existing packaging laws but also
improved some of the regulations. For example, the Austri-
an packaging ordinance includes regulations for household
packaging and commercial and industrial packaging.
Distinctively favourable tariffs in Austria
As a privately run stock company, ARA was founded in 1993
and is owned by Altstoff Recycling Austria Verein – an asso-
ciation that also functions as the sole shareholder. Every
company that manufactures, imports or distributes packaged
products can become a member of this association
and participate in the decision-making process as ARA coowner.
Only companies belonging to the waste management
industry are excluded from membership to avoid conflict of
interest. At the moment, some 200 leading companies are
members of the association. The mission given to ARA by the
owners association has remained unchanged since 1993: to
fulfil the collection and recycling quotas at the lowest possible
sustainable cost to all customers.
This mission was the driving force during the first 15 years
and still is and therefore it is imperative that all possible
optimisations are implemented in collection and recy-

Editorial
Tariff comparison
license for the disposal of...
Foto: Franz Pfluegl - FOTOLIA
yogurt container
0,90 0.90 0.42 1.23 1.16 0.16 0.13
DSD (Germany) ARA (Austria)
values in € cents, source: DSD, ARA, price basis 2007
plastic bag crayon box
cling. More than 10 years ago, the ARA system was the
first collection and recycling system in Europe who put out
these services to tender – quite some time before the DG
competition made that mandatory. Since then this process
has been repeated continuously and improvements
implemented permanently.
This persistent procedure has resulted in decreasing tariffs
since 1995 – up to 50 per cent. In fact ARA tariffs have
been below the German prices for quite a long time.
It is amazing then that in spite of competition between 10
dual systems, German tariffs are still considerably above the
Austrian prices. For instance the licence fee for a yoghurt
pot costs at the German DSD EUR 0.90 per year; at ARA
EUR 0.42. The costs for a plastic bag amounted to EUR 1.23
(DSD) and EUR 1.16 (ARA). “It seems that although prices
were reduced in the past years, German systems could offer
even lower prices for their customers. But since profit is the
centre stage for their business, possible reductions are not
passed on in their entirety. With that kind of business policy,
the customers – more precisely German consumers – lose
several hundred millions,” Stiglitz believes.
In contrast to the above described situation, ARA system is
acting as a non-profit company. It doesn’t bag surpluses as
profits, but gives it back to the supply chain. “We are in debt
to our customers, the consumers and the environment. Their
interests come first. Compared to that, the long standing
In Germany, the licencing fees
for packaging is consistently
more expensive than Austria.
structure in Germany was broken up bit by bit, forced by a
decision from the German Federal Cartel Office. The question
now is: who benefits from this development?” Stiglitz
describes the difference between the situation in Germany
and Austria.
Impurity quotas in Austria are decreasing
As result of the close cooperation with the Austrian
municipalities since 1993, the ARA system has succeeded
in motivating the Austrian citizens to collect packaging
separately and ensures the necessary collection quality.
With this cooperation ARA capitalises on the confidence that
citizens place in municipal waste management. Because
waste has always been within the responsibility threshold of
the municipalities, consumers consider them the most trusted
and reliable source for information on this matter. The
communication workload is carried by so called waste-consultants
who are employees of municipalities or communal
waste management associations. With agreed financial
contribution towards the personnel costs of these waste-consultants
ARA is able to make use of this valuable and highly
trusted communication channel. As part of a comprehensive
communication strategy, waste consultants inform citizens
in their specific region while ARA informs and motivates the
consumers by running a nationwide campaign. On the one
side, this communication strategy ensures that consum-
9

Feature | Separation System
ers get the same message from both the municipality and
ARA. On the other side, the communication is flexible and
regionally adaptable. Because waste consultants work in
small regions they have a detailed knowledge of the local
situation. That is why they are able to react fast and accurately.
The advantage of this regional communication becomes
visible especially for local changes in the collection systems:
without almost any time and information loss adjustments
can be communicated correctly to the affected inhabitants.
This was proved recently when the collection of lightweight
packaging was changed to plastic bottle collection in several
regions in Austria.
This change was made possible because of landfill ordinance
regulations and was realised in coordination with
the local communities. It showed outstanding results shortly
after introduction. Not just the quantity of the collected
plastic bottles could be raised but also the quality of the
collected material has improved incredibly. More than three
million Austrians are using this new collection system and
the amount of impurities within the yellow bin for lightweight
packaging has decreased. The comparative value averages
to 19 per cent throughout Austria. Even the collection in the
federal capital Vienna reached a quota which never seemed
to be achievable in a city of over a million inhabitants – less
than 15 per cent impurities.
In total, the Austrians collect about 740,000 tonnes of
packaging per year. The ARA system provides more than 1.2
million collection bins and additionally 1.4 million households
are serviced by door-to-door-collection for lightweight
packaging.
In comparison – the competitive situation in Germany leads
in the opposite direction. Communication measures towards
the consumers have ceased almost completely because
none of the collection services is willing to spend money
on something that other competitors benefit from. As a
10
result the quota of impurities within the collection is rising
dramatically and bins are removed to reduce costs. But
thinning out the collection system causes dissatisfied consumers
who are no longer willing to collect packaging properly.
At the moment experts estimate the impurity quota of
lightweight-packaging amounts between 40 and 65 per
cent.
90 per cent support the separate collection
“In Austria we are on the right track. Our customers, the
public authority and the waste co-operatives confirm this.
The consumers also approve of the system: the excellent
collection morale, the good collection quality and the high
acceptance prove this,” explains Stiglitz and refers to a
recently conducted survey of the Austrian Gallup Institute
on behalf of the ARA system. Ninety per cent of the interviewed
persons said that the collection of recyclable materials
makes sense.
Ninety-five per cent collect packaging separately from
residual waste and six out of ten Austrians don’t see any
additional effort for separate collection. Seventy-six per
cent cannot imagine living without separate collection.
Two reasons for acceptance are the tight net of collection
containers all over the country and the knowledge of the
citizens about the value of recyclable materials for the protection
of natural resources: eight out of ten interviewees
underline that the clean disposal of recyclable waste is also
important for tourism and a positive public sentiment of
Austria.
“It was always very important to us, to explain to people not
only how to collect but also why. Only if citizens like you and
me understand the purpose of the separate collection, they
are favourable to it,” Stiglitz describes one factor of success
for the high acceptance of the ARA system by Austrian citizens.

Feature | Separation System
Equal terms of competition for all companies
As the ARA System is obligated to treat its licensees on
equal terms, the conditions for the economy in Austria are
much more balanced. To guarantee fair competition for all
affected companies on the market, ARA examines and audits
800 customers per year for compliance. By means of mar-
keting and sales ARA also succeeds in keeping the number
of participating companies – who partake in both collection
and recovery for free – on a low level. This so called free rid-
er quota is estimated to be at 10 to 15 per cent in the area
of household packaging. Each year about 850 additional
companies sign contracts with ARA. This means a net growth
of the total number of clients of about 300 per year. By the
end of 2007 ARA serviced approximately 15,000 customers.
In Germany large companies get special conditions. Furthermore
the free rider quota is considerably higher. Experts
estimate that only 60 per cent of the obligated companies
in Germany contribute to the financing of the household collection.
They are therefore under increasing pressure to cut
costs through non-sustainable measures.
ARA secures the market for small and medium
sized waste management companies
The ARA system has had positive effects on the Austrian
economy: it secures some 3,000 jobs in waste management
and allows a multifarious Austrian waste management
industry to thrive. The ARA system closely cooperates with
more than 200 regional waste management companies,
recycling companies and waste management associations
all over Austria, thus establishing a dense network for the
For the competing collection systems, citizen
service and sustainability are not the decisive
factors in Germany - cost is. That is why
important information and motivation for
consumers to seperate waste has been omitted.
Containers with low fill rate and high litter
polution rate are disposed of in order to save
costs. The results: the motivation of citizens
to seperate their waste disappears and the
entire waste disposal system falls apart.
12
efficient and cost-effective collection and recovery of packaging
waste.
In Germany the market is dominated by a few multinational
waste management groups and most of them hold their own
collection and recovery system. It is clear that these collection
systems do not put all services to tender but first use
the capacity of their own facilities. As a result, many small
local waste operators have already disappeared and a takeover
wave led to a reduction of the number of companies
offering disposal services.
In Austria the collection of packaging is working properly.
More than 70 per cent of PET-bottles are recovered and
more than 50 per cent recycled mechanically. This is one of
the reasons why a deposit system for disposable beverage
packaging as put into force in Germany was not implemented.
To the contrary: the Austrian solution to the problem was
a voluntary agreement between the Ministry of the Environment
and the beverage industry – instead of a compulsory
measure. The agenda achieved its aims: for instance 80
per cent of the beverage packaging for consumers becomes
Price war instead of citizen service
Quota for Austrian/German collection containers (Gelbe Tonne)
40–65%
19%
Germany Austria
Source: ARA, German media reports (e.g. FAZ from 9.8.2006)

Package Recycling
Editorial
30 *
Yearly Costs per Resident
16
Germany Austria
* € 18 licensing cost + € 12 Cost of Operations for
the disposable beverage packaging deposit system
Source: DSD, Deutsche Pfandsysteme GmbH., ARA calculations, price basis 2005
refilled or recycled. The goal for disposable PET bottles is to
recycle at least 50 per cent of the amount put in the market.
Beyond that a yearly increasing amount of PET has to be
recycled for the production of new PET beverage bottles – a
bottle-to-bottle recycling. To reach these goals the collection
of PET bottles had to be increased by the ARA system, first
by changing the lightweight packaging to a plastic bottle
collection and second by extending the collection at events,
public locations and other special collections on-site.
Bottle-to-bottle recycling for Austria
Since August 2007, Austria’s first bottle-to-bottle
recycling plant is in full operation – less than one year
after construction began. The plant is owned and run by
a partnership between five of Austria’s biggest beverage
producers – Coca-Cola Beverages Austria, Radlberger, Rauch,
Spitz and Vöslauer – and provides ecological recycling of
PET bottles in Austria. Its operation is a prerequisite for
the beverage industry to reach the goal of the Agenda of
Sustainability. At the moment 6,000 tonnes of food-grade
recycled PET are produced annually for the use in new
bottles. With its Agenda of Sustainability, Austria proves that
there are other and vastly more efficient ways to protect
the environment instead of installing a deposit system for
disposable beverage packaging at enormous costs.
Including the cost of operation of the disposable
beverage packaging deposit system, the
German system for used pagaging is twice
that of Austria per capita. In Austria, this
deposit system is not in place.
German deposit system failed
To achieve the minimum recovery quota requested by
the European Community some countries established a
mandatory deposit for disposable beverage packaging. A
study of Roland Berger Strategy Consultants proves that a
deposit is not a sustainable and efficient instrument to fulfil
the European packaging directive.
In Germany the deposit system was installed for a different
reason. The goals were to first stabilise the refillable
beverage packaging quota and second to minimise the
littering problem. The deposit system installed in 2003 by
Germany was a very complex and expensive system. The
existing infrastructure of the dual recovery systems was
ignored and a new take back material stream established
through retail outlets, shops, gas stations etc. Installing this
system cost EUR 726 million; to run the deposit system the
German economy pays EUR 793 million per year. Taking into
consideration that only 2.7 per cent of the packaging quantities
are disposable beverage packaging, the costs of the
deposit system are immense compared to its ecological
benefits. The deposit system is then triple the cost of household
collection.
The deposit system missed the environmental goal of the German
packaging ordinance spectacularly: after a short positive
effect at the start of the deposit system the quota of reusable
packaging declined. Only beer fulfils the politically aimed
quota for reusable packaging of 80 per cent. The quota for
refillable non-alcoholic beverages has been almost free fall:
while it was 57.5 per cent before the mandatory deposit in
2003, it is now at an all time low of 29.9 per cent four years
later – with no end in sight. Other goals such as the significant
increase of material recovery and litter reduction were
also missed: recovery went up a mere 10 to 15 per cent and
the effect on littering was not measurable.
13

Feature | Separation System
“To invest almost EUR 800 million and accept a yearly cost
of another EUR 800 million with these results is not justi-
fied! I ask the environmental authorities in all EU member
states to look at this failure before they decide on mandato-
ry deposit systems in their country,” says Stiglitz.
The study of Roland Berger Strategy Consultants confirms
that Austria is on the right track with its Agenda of Sustain-
ability for beverage packaging.
Waste reduction as a new goal
For five years now ARA is also obligated to support waste
avoidance and waste reduction activities. One of the first
projects in 2003 was the financing of a chair for resource
management at the Technical University of Vienna. One of
the goals was to close the loop between waste management
and design plus production by creating a knowledge base.
Students should learn how products should be designed
for optimised recycling material streams. Other actions
included setting up an initiative to support small and medium
sized enterprises in their effort in waste avoidance. This
major project is run in cooperation with the City of Vienna,
the province of Lower Austria and the Austrian Camber of
Commerce. Small and medium sized enterprises can apply
for investment grants that are directed towards waste avoidance.
If the submitted project fulfils the guidelines of this
In Germany, licensing fees for disposal
in a dual system (DSD) is
only paid for two out of three pieces
of packaging. Two-thirds of the company
therefore carry the entire costs
of disposal of packaging through the
packaging disposal container (Gelbe
Tonne). In Austria, thanks to intensive
cooperation between business,
municipalities and communities
and under the supervision of ARA,
90 per cent of the amounts disposed
of within the packaging life cycle are
licensed with the ARA by the producers
of the waste and in accordance
with the rules.
14
initiative, one third of the investment cost will be covered.
ARA also is very active in the waste management of large
events. Besides setting up an optimised collection system
for large events, ARA supports organisers in planning waste
avoidance measures. During the event, ARA experts teach
visitors how to avoid waste and how to separate packaging
properly.
Competition in the household sector
must not endanger achievements
Recently the household packaging sector in Austria was discovered
as a new market by the new entrepreneurs in Germany.
Of course ARA will take up this challenge; after all
competition in trade and industrial sectors has exists since
1996 and ARA managed quite well. “There is nothing wrong
with competition – government however must make sure
through appropriate legislation that there is a level playing
field for all competitors especially in this sensitive area. It
must also be taken into consideration whether competition
in the household packaging arena endangers the national
ecological and economical achievements and benefits created
over the years. It must also not decrease the flexibility
and improvement potential of the collection system. Such
effects that we see in Germany are not desirable ones,” says
Stiglitz. v
Green dot: one-third of payers break off
licensing
fees not paid
licensing
fees paid
Germany Austria
Source: DSD, ARA calculations, proce basis 2005
licensing
fees not paid
licensing
fees paid

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Analysis | Primary Materials
Hedging against
commodity price risks
Three Examples of how to react on the market situation
The strong movements in commodity prices over the past
few years have had a major impact on many companies’
core business and financial results. Within the metal
industry, firms involved in processing, as well as produc-
ers and recycling companies, are all feeling the repercus-
sions. Mainly due to the very high volatility (fluctuation
intensity), results are hard to predict.
Particularly in the recycling industry, price movement risks
principally occur between the time of purchase and the final
sale of recycled commodities. If, for example, various scrap
is bought, recycled over the next three months into sepa-
rate components, such as copper, nickel, aluminium, molyb-
denum or other metals, and then sold, there is the risk of a
price decrease in the market for the individual components
between the purchase date and the sale date. Due to the
high fluctuation intensity, this risk can assume significant
proportions.
The term ‘hedging’ is often mentioned when referring to price
fluctuation risks. But what does hedging actually involve,
particularly in connection with the metal processing and
recycling industries?
In this context, hedging against commodity prices is generally
used, and it can be carried out via several strategies.
Some are offered in the financial sphere, for example by
banks. In this case, hedging instruments are involved that
should be seen as generally completely divorced from the
physical supply of the raw material. Similar to strategies for
interest or currencies, there are many different possibilities
that can be adapted to the market opinion and/or the individual
situation in a company.
But the first step before the various hedging instruments or
possibilities should even be considered is to ascertain the
16
actual risk position for the individual commodities used by
the company – i.e. for what proportion of the core business
can risks and/or losses arise in the event of negative price
trends, do prices that have dropped during the recycling
process have to be passed on to the purchaser.
Once the way in which the company is exposed to a price
fluctuation risk has been established, various hedging
options may be appropriate.
Financial institutions usually offer pure hedging instruments
(derivatives) that do not encompass a physical supply of the
raw material. When financial derivatives are used to hedge
against price risks, a distinction is made between procure-
ment management and price management.
Advantages: by separating the price from the procurement
decision, a recycling company’s entire raw material procure-
ment – and later sale – can, for example, be made with dif-
50
40
30
20
10
0
1 year volatility of various
base values
DAX
DJ Ind. Avrg
British Petroleum
EUR/USD
USD/JPY
IPE Brent
1.0% Fuel Oil
0.2% Gas Oil
Aluminium
Copper
Nickel
Source: Deutsche Bank AG, Global Markets Research

Editorial
Procurement Management Price Management
Delivery date
Delivery quantity
Most favourable contractual conditions
Best daily price
ferent suppliers on a variable price basis and with different
purchasers, and it can be covered by a single hedge with
one calculation price.
Disadvantages: Hedging by means of a ‘financial derivative’
does not guarantee physical supply. Therefore, if the core
business – the physical supply – is not effected (for example,
because the supplier cannot provide the specified quantity),
but the hedge is still in place, it can result in payments –
depending on hedging strategy – even though the core business
is not being performed.
As opposed to physical fixed price supply, a negative market
development can lead to a negative financial rating when
using ‘financial’ hedging instruments (financial derivatives),
depending on hedging strategy.
Market conditions
The basis for every ‘financial’ hedge is the respective forward
rate curve. This tells a commodities buyer what price a hedge
for a future date or period of time can be fixed at. This curve
can take different forms. For example, if the forward prices
are higher than the prices for a short-term delivery, e.g. the
cash price (delivery in two business days), this is known as
a contango. However, if the forward prices are lower than the
spot price, this is referred to as backwardation.
To calculate the forward rate curve, several factors are drawn
on, for example the short-term price (spot price), storage
costs, interest charges, production costs and the influence
of the weather.
There are several options to hedge against a price decline:
in this context, it is certainly useful to be familiar with finan-
Fixed price
Price ceiling or price floor
Commodity purchase
Source: Deutsche Bank AG, Global Markets Research
cial price hedging options and to put them into practice, if
required. To this end, there are numerous different strategies
that can be tailored to a company’s individual requirements
or situation. This article intends to examine the following
options in more detail.
1. Securing a fixed price via financial futures trading (swap)
2. Securing a ‘minimum price’ by buying a put option with
full participation in rising market prices
3. Securing a fixed price via a floating-floating swap
Example: swap – securing a fixed price
A company wants to secure a fixed price today for a later time
period, e.g. the second half of 2008, for its nickel sales. A contract
based, for example, on the monthly average rates of the
London Metal Exchange (LME) nickel cash price quotations
is negotiated with the purchaser. Additionally, a swap hedge
is completed with a bank for 2009, through which the company
receives a fixed price, while in return paying the bank the
monthly average of the daily LME nickel cash price quotations.
Overall, the variable payment flows cancel each other out,
leaving just the payment flow for the fixed price and the
commodity supply.
This means that the secured fixed price is completely independent
of the material procurement/sale.
Advantage: with a fixed price swap strategy, the company is
hedged against falling prices. It does not have to pay a premium.
Disadvantage: the company cannot participate in rising
prices; physical supply is not covered by completing a swap.
Objective: securing a fixed calculation basis.
17

Analysis | Primary Materials
In figures, e.g. for nickel: cash price US-Dollar 28,000/metric
tonne, forward price for the second half of 2008 with monthly
settlement is e.g. US-Dollar 28,300/metric tonne and there-
fore US-Dollar 300/metric tonne above the cash price.
Example: put option
A company has to pass price decreases on to its purchasers,
but can also usually put through rising prices. Hedging
through buying a put option is an alternative here. In this
way, the company can participate in rising prices in the core
business (if this is set up on a variable price basis) and is
still hedged against falling prices.
A put option works in a similar way to a sort of ‘insurance’. A
minimum price, or strike price, is secured. For prices below
the strike price, a compensatory payment for the benefit of
the option buyer is made. For prices above the strike price,
the put option buyer can fully participate in the higher prices
in the core business. To do this, however, a premium has
to be paid upon purchase of the option.
The size of the option premium depends in particular on the
following factors:
- strike price
- duration
- volatility (fluctuation intensity) of the commodity
Advantage: hedge against falling prices; full participation in
rising prices.
Disadvantage: high premium costs; physical supply is not
guaranteed by completing a put option.
Objective: securing a fixed calculation basis, participation
in rising prices.
18
variable price
Purchaser Company
commodity fixed price
variable price
Purchaser Company
variable price
poss. compensatory paymt
raw material premium payment
for ‘safe chance’
In figures, for nickel: cash price per metric tonne = US-Dollar
28,000, Strike price for the option e.g. US-Dollar 28,000/
metric tonne, premium: US-Dollar 3,200/metric tonne
As many companies cannot easily take the hedging costs –
which are very high due to the high volatility in commodities,
for example – into account in their calculation, strategies are
often preferred which are defined as ‘somewhere between’
futures trading and an option. These can be, for example,
fluctuation margin strategies or other structured hedging
strategies.
Example: securing a fixed price
via a floating-floating swap
In one quarter, a recycling company purchases scrap that
has a nickel content of around ten per cent. As the nickel
price has a high fluctuation intensity, it is very much a pricesetting
factor for the purchased scrap. In this example,
the process of recycling the scrap into almost pure nickel
takes around three months, meaning its sale begins in
the subsequent quarter. If the nickel price drops in this
subsequent quarter, the price decline would have a negative
impact in terms of the selling price for the recycling company.
To avoid this, the following transaction can be completed.
A floating-floating swap works in a very similar way to
securing a fixed price as described above. Here, the recycling
company hedges itself for one quarter against a falling
nickel price. The average price of the previous-quarter prices
established on the LME is taken as a basis for securing the
price. In this way, securing the price for the sales prices is
more closely linked to the purchase prices.
Securing the price is completely independent of the material
procurement/sale.

Editorial
Advantage: through the strategy of securing a fixed price
(swap), the company is hedged against failing prices. There
are no ‘premium costs’. The hedging price for the ‘sale’ is
based on the prices for the ‘purchase period’. Due to the
set-up of the forward rate curve (spread), the sales price is
higher than the purchase price.
Disadvantage: the company cannot participate in rising
prices. Physical supply is not covered by securing a fixed
price (swap).
Objective: securing a fixed calculation basis.
In figures, e.g. for nickel: spread: US-Dollar 200/metric tonne.
If the price is fixed at US-Dollar 28,000/metric tonne in the
‘purchase quarter’, the recycling company is hedged with a
price of US-Dollar 28,200 for the ‘sales quarter’. The hedging
instruments described here are only a small selection of the
available options. There are both numerous strategies and
numerous commodities that can be considered for financial
hedging strategies.
Steffen Rapp
Regarding commodities for which there is no direct price
securing option, it is often worthwhile to compare the
price trends for other commodities that are ‘financially
tradable’with the price trend for the commodity used in their
own company, and to hedge the risks that could arise using
a financial hedging strategy for the ‘tradable commodity’, if
necessary. v Steffen Rapp, Deutsche Bank
19

Opinion | Graham Davy
Come together...
The European Market: one directive, but 27 versions of WEEE
Following up on his recent speech given at the January
IERC (International Electronic Recycler’s Congress)
conference in Austria, Graham Davy, Global Chief
Executive of Sims Recycling Solutions, takes a look at
global responses to the challenge of e-waste. As one of
the very few organisations that are capable of viewing ewaste
from a global perspective, Davy is ideally placed to
give his opinion on improving his response to the issue.
The European Union (EU) was created to promote the free
movement of goods, labour and services but this is not
what is happening with regard to either product recycling or
product reuse. Indeed, the EU is anything but one market
- while there is one EU directive, there seems to be 27 different
versions of Waste Electrical and Electronic Equipment
(WEEE) implementation, as well as the same number of
interpretations of the ‘permitting’ regulations. Each country
is able to put its own blocks on the free movement of WEEE
across country boundaries, which results in difficulties for
the industry and society in achieving sustainable economies
of scale. In addition, transfrontier shipment regulations are
a barrier to the trade of WEEE product and add cost into the
The Austrian translation of WEEE
is different to those on the
other side of the alps.
20
supply chain. But should there be these barriers between
the generally well-developed economies of Europe?
Following implementation of the Restriction of use of certain
Hazardous Substances (ROHS) Directive, affected electronics
manufacturers were able to produce one product for all 27
countries. However, post-WEEE requires recyclers and their
customers to have 27 different solutions for recovery and
recycling. The result is that European recyclers working on
the international stage are placed at a disadvantage.
Complex pictures all over the world
Looking at the United States there is very little in the way of
a unified federal response to e-waste – more like a patchwork
of 50 individual states, where some have e-waste
legislation and others don’t. Export controls may be federal
but in practice are often confused with state arrangements
for e-waste legislation, while penalties vary hugely. The U.S.
has not signed the Basel agreement, giving U.S. exporters
a distinct advantage over European recyclers. Elsewhere
the picture is equally complex with Canada’s responses
formulated by the provinces and Australia having no national
legislation addressing the issue.

Editorial
Graham Davy at the IERC
in Salzburg, Austria.
Across the APAC region, the main concerns are very much
responsible recyclers who have invested millions feel the
pain, whilst unscrupulous merchants are benefiting through
false paperwork and opportunistic middlemen investing little
in real assets. We need to enforce best recycling practices
across the world and remove the ambiguity of recovery
versus recycling. Indeed, failure to set high standards
focussed on illegal shipments to the region, the relatively punishes responsible recyclers in favour of cowboy operators.
young recycling infrastructure in the area as well as under- We must work harder with central government to aid their
developed environmental, health and safety standards. From understanding of their own processes.
a global perspective, it is clear that we are a long way away It would not be overstating things to suggest that the
from an even playing field.
combination of poor enforcement will threaten the
However, my main concern is that central government existence of responsible recyclers, wherever they are
is not focusing upon implementation and enforcement. situated in the world. It will also prop up the export of
Compliance must be audited and enforced – with punish- WEEE, encourage illegal practices and discriminate against
ments fitting the crime – rather than being a slap on the positive sustainability and best practice. In addition, poor
wrist. In addition, we need to put an end to illegal local enforcement works as a tax on each citizen as well as
practices and export. Governments should be actively facili- impacting heavily upon the environment, the biggest driver
tating the free movement of output streams for secondary of all.
manufacture worldwide.
The recycling industry is a common sense industry – and
As a society, we must also learn to recognise the shifting an industry that reacts extremely quickly to changes in
dynamics in manufacturing and be able to react quickly to the business environment. But lengthy red tape and even
any changes in the trends of recycled material movement. longer reversal procedures are, sadly, letting the recycling
Governments apply often competing legislation that flies in sector down when it comes to seeking to achieve higher and
the face of common sense recycling strategies. For example, sustainable recycling targets. What we still lack is direction
CRT-based glass production is now prevalent in Asia. Yet, EU from government as to how legislation should be shaped
red tape prevents streams of recycled glass from the EU being in order to foster a smooth implementation and transition
exported to willing buyers in Asia for closed loop recycling. to longer term strategies for willing investors. My view was
Another example of the result of over-stringent bureaucracy – and still is – that the government believes recycling is
can be seen with regard to plastics production, which is for the easy part of the equation and places it low amongst
the most part carried out in Asia. Again due to EU regulation its priorities. However, the responsible recycling industry
it is almost impossible to export recovered plastics – is suffering from a lack of understanding of its dynam-
including single polymer streams – commercially because ics and government would do well to listen and implement
Europe still regards single polymer material from processed some common sense strategies that safeguard the future of
end-of-life products as waste rather than product. Therefore, environmentally responsible operators. v
21

Market | BaseMetals
Survey of forecasts
Survey of BaseMetals analysts shows interesting results
Last month, BaseMetals.com published a survey of a poll
of researchers, who make a living by analysing the metal
markets and listing their forecasts of average base metal
prices for this year. The survey – which reported the forecasts
of 22 analysts threw up some interesting results.
Part of an analyst’s function is of course to attempt to
forecast prices – which, as those of us who do it know, is a
pretty thankless task. As far as we are aware of, no one pre-
dicted that the base metals would reach the giddy heights
recorded in the past couple of years. This was due to the
huge influx of fund money into commodities. In fact, too
much emphasis is probably placed on this aspect of an
analyst’s work. That said, analysts don’t hesitate to take
credit when their forecasts prove to be accurate, but the
good ones know that this is more often a reflection of luck
rather than judgement. When we get it right it is often for the
wrong reasons.
Average annual
actual and forecast
Base Metal Prices
(USD/tonne)
22
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Aluminium
2006 actual
2007 actual
2008 forecast
Copperium
With the exception of zinc, the metals all outperformed the
average of analysts’ expectations in 2007 – in the case of
lead spectacularly so. Apart from aluminium, which was only
8.5 per cent higher than the consensus, the others also outstripped
expectations by a good margin. This year the consensus
is that other than tin, prices will fall across the board,
most notably in the cases of zinc and nickel. This year the
aluminium price is expected to fall by 4.5 per cent from last
year’s average of US-Dollar 2,640. The decline would be
greater were it not for the fact that four analysts expect the
average price to be higher this year than in 2007. The highest
forecast is for an average of US-Dollar 2,850, while the lowest
is US-Dollar 2,306. In any case, one wonders where the
bulls expect prices to get to given that they are currently trading
around 400 US-Dollar below the forecasted high average.
BaseMetals.com’s base case forecast is near the lower end of
the range at US-Dollar 2,350, but even this may prove optimistic
if the economic environment continues to deteriorate.
Zincerium
Leaderium
Nickel
Tin

Editorial
60,000 Highelium Low
50,000
40,000
30,000
20,000
10,000
0
Aluminium
Our forecast for copper of US-Dollar 6000 is the lowest of
the sample, of which the high is US-Dollar 7,800. This is
from one of three analysts who believe the average price this
year will be higher than in 2007. We can only assume that
these analysts take a more sanguine view about the global
economy than most others and/or they expect production
to once again fall short of expectations. In any event, the
consensus is that the copper price will average 5.1 per cent
lower this year than in 2007. We think this optimistic on a
Panglossian scale.
Copperium
Zincerium
Leaderium
Nickelium
No one expects the zinc price to be higher this year, although
the spread between the highest and lowest forecast ties
with lead as being the greatest at 38 per cent. However, the
highest forecast of an average of US-Dollar 2,850, as well
as a number of others, suggests that prices are expected to
rally strongly, given that the market is currently trading below
US-Dollar 2,300. We think this extremely unlikely and our
forecast of US-Dollar 2,200 is the lower end of expectations.
The consensus is that lead prices will fall on average by just
3 per cent this year to US-Dollar 2,511. Again we think this
is optimistic and are forecasting US-Dollar 2,200. As noted,
there is a wide divergence of opinion – although having said
that, the high forecast of US-Dollar 3,300 is rather out on a
limb as is the low of US-Dollar 2,050, with most forecasts in
Tinkelium
High and low forecasts 2008 base
metals prices (US-Dollar/tonne).
the US-Dollar 2,000-2,500 range. Four analysts believe the
average price will be higher this year than in 2007.
The nickel price is expected to record a substantial fall this
year, with the consensus pointing to a 25.5 per cent slump
to US-Dollar 27,782. All analysts agree that the price will fall,
although there is a wide spread on the extent of the decline,
with a high of US-Dollar 30,864 (14 US-Dollar/lb) and a
low of US-Dollar 24,000 – which is our forecast – compared
with US-Dollar 37,275 last year. As for tin, most analysts
expect the average price this year to be higher than in 2007
and even those who do not are predicting prices at near historically
high levels. Again, BaseMetals.com is near the bottom
of the scale, with a forecast of US-Dollar 13,000.
Finally, we’ve made two observations:
• Firstly, these metals do not trade in a vacuum and their
price movements are often dependent not only on the major
contracts (particularly copper) and other commodities (such
as oil and precious metals). Looking at the table of forecasts,
it appears that some analysts have failed to take this
into account.
• Moreover, most analysts seem to have a rather rose-tinted
view of the global economic outlook and the forecasts generally
portray that there is a good deal of ‘fence sitting’ going
on. Given how the markets have moved in the past couple of
years this is entirely understandable, but only serves to confirm
that forecasting is a mug’s game. u
23

Data | Market
S����� �� L����� M���� E������� (�� �, � = �������)
Store 21.02.08 20.02.08 Landing Delivery
HG Alu 951,250 952,725 550 2025
Ingots 317,650 318,450 800
Baltimore 6,300 6,350 50
Bilbao 13,650 13,650
Chicago 975 975
Detroit 250 250
Johor 46,200 46,350 150
Kwangyang 12,025 12,025
Moji 50 50
New Orleans 275 275
Pusan 31,050 31,550 500
Rotterdam 45,200 45,200
Singapore 161,675 161,775 100
T-Bars 337,550 337,975 75 500
Baltimore 151,500 151,750 75 325
Chicago 60,150 60,175 25
Detroit 15,925 15,925
Göteborg 1,650 1,650
Helsingborg 3,025 3,025
Hull 12,900 12,900
Johor 1,100 1,100
Kwangyang 1,825 1,825
Liverpool 12,400 12,400
Long Beach 6,350 6,350
New Orleans 2,575 2,625 50
Pusan 2,800 2,800
Rotterdam 17,550 17,550
Singapore 27,675 27,675
St. Louis 9,925 10,025 100
Vlissingen 10,200 10,200
Sows 296,050 296,300 475 725
Baltimore 77,500 77,550 25 75
Bilbao 375 375
Chicago 19,350 19,350
Detroit 42,550 42,550
Göteborg 2,275 2,275
Johor 7,975 7,725 250
Long Beach 525 525
New Orleans 2,850 2,925 75
Pusan 175 200 25
Rotterdam 30,175 30,175
Singapore 110,775 111,125 200 550
St. Louis 1,525 1525
Alum. Alloy 40,220 40,440 220
Ing. A380.1 22,560 22,760 200
Bilbao 500 500
Bremen 120 120
Genoa 18,040 18,240 200
Hamburg 60 60
Liverpool 720 720
24
Store 21.02.08 20.02.08 Landing Delivery
Rotterdam 100 100
Singapore 40 40
Triest 2380 2,380
Vlissingen 600 600
Ing. 226 16,300 16,320 20
Antwerp 980 980
Johor 2,980 2980
Liverpool 300 300
Rotterdam 5,220 5,240 20
Singapore 5,000 5,000
Triest 20 20
Vlissingen 1,800 1,800
Ing. D12S 380 380
Singapore 300 300
Triest 80 80
LS26 980 980
Antwerp 20 20
Rotterdam 620 620
Singapore 160 160
Vlissingen 180 180
Copper 141,600 135,375 8,400 2,175
A Cathodes 141,600 135,375 8,400 2,175
Antwerp 1,275 1,375 100
Baltimore 650 650
Bilbao 1,375 1,575 200
Dubai 25 25
Hull 14,725 8,725 6000
Johor 125 125
Kwangyang 27,275 27,275
Leghorn 6,750 7,650 900
Liverpool 200 200
New Orleans 26,650 27,125 475
Pusan 13,850 11,475 2,400 25
Rotterdam 7,900 8,250 350
Singapore 7,950 8,050 100
St. Louis 21,325 21,325
Triest 3,175 3,175
Vlissingen 8,350 8,375 25
NASAAC 107,740 107,740 80 80
Ingots 54,820 54,860 40 80
Baltimore 43,440 43,520 80
Chicago 6,440 6,400 40
Detroit 2,000 2,000
Louisville 300 300
Owensboro 1,500 1,500
St. Louis 1,140 1,140
Large Sows 7,420 7,420
Baltimore 6,480 6,480
Chicago 160 160
Owensboro 780 780
Store 21.02.08 20.02.08 Landing Delivery
Small Sows 31,860 31820 40
Chicago 18,860 18,820 40
Detroit 11,360 11,360
Louisville 440 440
Owensboro 980 980
St. Louis 220 220
T-Bars 13,640 13,640
Baltimore 3,620 3,620
Detroit 7,860 7,860
Owensboro 2,160 2,160
Nickel 47,958 47,832 300 174
Cathodes 150 150
Baltimore 96 96
Göteborg 54 54
Full Plate 47,202 47,076 300 174
Baltimore 1,236 1,236
Chicago 486 486
Göteborg 984 984
Hamburg 1380 1,380
Helsingborg 3,120 3,120
Liverpool 3,516 3,564 48
Pusan 84 96 12
Rotterdam 33,282 33,096 300 114
Singapore 84 84
Tyne & Wear 2,694 2,694
Vlissingen 336 336
Briquettes 606 606
Rotterdam 12 12
Singapore 588 588
St. Louis 6 6
HG Tin 10,745 10,700 70 25
Johor 3,700 3,655 70 25
Kwangyang 1,125 1,125
Pusan 170 170
Singapore 5,750 5,750
SHG Zinc 121,525 121,050 875 400
Antwerp 500 500
Bilbao 600 600
Detroit 1,275 1,275
Dubai 12,575 12,575
Johor 19,400 19,650 250
New Orleans 64,575 63,825 775 25
Rotterdam 17,825 17,875 50
Singapore 1,375 1,275 100
Tyne & Wear 275 275
Vlissingen 3,125 3,200 75
Lead 44,875 45,825 150 1,100
Antwerp 1,550 1,400 150
Baltimore 275 275
Bilbao 150 150

Editorial
LME T���� S����
change stocks
Copper +6,225 141,600
A Cathodes +6,225 141,600
HG Tin +45 10,745
Lead -950 44,875
SHG-Zinc +475 121,525
HG-Aluminium -1,475 951,250
Ingots -800 317,650
T-Bars -425 337,550
Sows -250 296,050
Aluminium Alloy -220 40,220
Ingots A380.1 -200 22,560
Ingots 226 -20 16,300
Ingots D12S +126 47,958
L.Sows 226 +126 47,202
Nickel 107,740
Cathodes -40 54,820
Briquettes 7,420
Full Plate +40 31,860
NASAAC 13,640
Ingots - 54,980
Large Sows - 7,780
Small Sows - 31,080
T-Bars
source: London Metall Exchange, 21.02.08, in t
- 13,980
F�����
25.02.08 22.02.08
Copper wire (EUR/t) 5,450.00 5,450.00
I����
22.02.08 21.02.08
Copper, Kassa, to manufacturers
of semifinished products (EUR/t)
6,363.21 6,381.16
Brass MS63 (EUR/t) 4,868.38 4,891.67
T����
wholesale price index (JPY/g) 22.02.08 21.02.08
Platinum 99,9 % 7,485.00 7,504.00
Silver 99,9 % 624.00 624.50-
Gold 99,9 % 3,270.00 3,268.00
K���� L�����
Tin market 22.02.08 21.02.08
Tin ex works, prompt (EUR/t) 17,450.00 17,000.00
Turnover 79 80
L����� M���� E�������
22.02.08. 21.02.08
High-grade Aluminium cash 2,865.50 2,865.00
3 month 2,902.00 2,900.00
15 month 2,937.00 2,938.00
turnover in $, batches of 25 t 214,882.00
Aluminium, Alloy cash 2,605.00 2,562.00
3 month 2,640.00 2,615.00
15 month 2735.00 2,720.00
turnover in $, batches of 20 t 2,963.00
Aluminium, NASAAC cash 2,585.00 2,610.00
3 month 2,620.00 2,612.00
15 month 2,720.00 2,720.00
turnover in $, batches of 20 t 4,743.00
Lead cash 3,284.00 3,315.00
3 month 3,265.00 3,286.00
15 month 3,118.00 3,155.00
turnover in $, batches of 25 t 18,111.00
Copper cash 8,322.00 8,281.00
3 month 8,283.00 8,241.00
15 month 7,830.00 7,815.00
turnover in $, batches of 25 t 121,730.00
Nickel cash 28,550.00 28,400.00
3 month 28,800.00 28,625.00
15 month 28,075.00 28125.00
turnover in $, batches of of 6 t 21,136.00
Zinc cash 2,451.00 2,470.50
3 month 2,475.50 2,490.50
15 month 2,423.00 2,442.00
turnover in $, batches of 25 t 52,262.00
Tin cash 17,335.00 17,450.00
3 month 17,450.00 17,445.00
15 month 17,365.00 17,355.00
turnover in $, batches of 5 t 5,538.00
USD/t - source: Dow Jones
B��� M����� E�����
Diff. in LME Cash Settlement Prices
Bid/Ask
22.02.08
Aluminium Russia A7E Rotterdam 45/50
Aluminium Russia A7 Rotterdam 43/48
EC duty paid Premium 105/110
EC duty unpaid Premium 45/50
Copper, Grade A cif Rotterdam 60/80
Copper, Stand. Grade cif Hamburg 35/40
Copper, Grade A cif Hamburg 60/80
Copper, Standard Rotterdam 35/40
Copper, Grade A cif Italien 60/80
Lead, CIS, duty paid Rotterdam 170/200
Tin, China Rotterdam 270/320
Tin, Malaysia Rotterdam 240/270
Nickel, cathodes 4x4 Russia 350/550
Nickel, uncut Russia 150/250
Zinc, special high gr., duty paid
USD/t
Rotterdam 20/250
L����� P������� M�����
22.02.08. 21.02.08.
Gold, official, 10.30 am ($/troy ounce) 945.75 943.00
Gold, official, 15.00 pm ($/troy ounce) 943.00 945.00
Silver, 12.30 pm, cash (p/troy ounce) 911.96 918.75
Silver, 12.30 pm, cash (cts/troy ounce) 1,794.00 1,798.00
Palladium, am (£/troy ounce) 256.30 259.40
ditto ($/troy ounce) 504.00 507.00
Palladium, offiz. pm ($/troy ounce) 506.00 519.00
Platinum, am (£/troy ounce) 1,098.40 1,110.20
ditto ($/troy ounce) 2,160.00 2,170.00
Platinum, pm ($/troy ounce) 2,155.00 2,180.00
Johnson Matthey base price ($/troy ounce)
Prices for unprocessed material f. Europe 22.02.08 21.02.08.
Platinum 2,161.00 2,190.00
Palladium 510.00 515.00
Iridium 450.00 450.00
Rhodium 9,080.00 9,080.00
Ruthenium 420.00 420.00
N�� Y��� C���� C�����
22.02.08 change paid low high 21.02.08
Feb. -2.35 378.70 378.70 378.70 381.05
March -2.10 378.95 377.00 379.50 381.05
April -1.95 379.75 379.75 379.75 381.70
May -1.90 380.30 376.50 380.80 382.20
June -1.70 379.80 379.80 379.80 381.50
July -1.60 378.70 377.05 377.90 380.30
Aug. -1.60 377.35 377.35 377.35 378.95
Sep. -1.25 375.40 372.50 374.70 376.65
N�� Y��� C���� G���
22.02.08 change paid low high 21.02.08
Feb. -1.40 944.70 944.70 944.70 946.10
March -1.40 945.00 950.20 950.20 946.40
April -1.40 947.80 939.00 952.50 949.20
June -1.50 952.60 948.00 955.80 954.10
Aug. -1.60 956.60 956.00 956.70 958.20
Okt. -1.70 960.10 960.10 960.10 961.80
Dec.
USD/troy ounce
-1.70 963.60 963.60 963.60 965.30
N�� Y��� C���� S�����
22.02.08 change paid low high 21.02.08
Feb. +8.50 1802.50 1802.50 1802.50 1794.00
March +8.50 1803.50 1777.00 1808.00 1795.00
April +8.60 1809.00 1809.00 1809.00 1800.40
May +8.80 1814.80 1791.00 1817.00 1806.00
July +8.80 1823.10 1793.00 1821.00 1814.30
Sept. +8.80 1830.10 1826.00 1826.00 1821.30
Dec.
cts/troy ounce
+8.80 1839.90 1839.90 1839.90 1831.10
25

Data | Market
N�� Y��� N���� P�������
22.02.08 change paid low high 21.02.08
April -20.40 2,142.80 2,142.80 2,142.80 2,163.20
Juli -20.40 2,142.80 2,142.80 2,142.80 2,163.20
Oct.
USD/troy ounce
-7.00 2,168.00 2,131.10 2,214.50 2,175.00
N�� Y��� N���� P��������
22.02.08 change paid low high 21.02.08
March +2.10 515.00 491.10 524.70 512.90
Juni +5.45 520.00 494.90 528.85 514.55
Sept.
USD/troy ounce
+0.80 523.05 508.50 518.70 522.25
USA
precious metals (troy ounce) 22.02.08. 21.02.08.
Handy & Harman Silver (cts) 1,797.50 1,806.00
Handy & Harman Gold ($) 943.00 945.00
Engelhard Gold ($) 945.25 947.26
Engelhard Gold. processed ($) 1,016.14 1,018.30
Engelhard Silver (cts) 1,783.00 1,787.00
Engelhard Silver. processed (cts) 2,139.60 2,144.40
AMM Palladium trader ($) 494.20 499.30
AMM Platinum producer ($) 2,095.00 2,148.00
AMM Platinum trader ($) 2,138.80 2,153.10
US Copper prices cts/lb 22.02.08. 21.02.08
Wire waste Nr. 2. blank trader 364.00 338.50
Wire waste Nr. 3, rolled 350.00 324.50
AMM Prices 22.02.08. 21.02.08
Aluminium. free market (cts/lb) 134.02 132.44
Antimony 99.65% ($/t) 6,100.00 6,100.00
Lead. free market (cts/lb) 386.55 376.05
Copper-Cathodes. free market
(cts/lb)
156.29 149.72
Magnesium 99.8%. fob Freeport
(cts/lb)
290.00 290.00
Nickel-Cath. free market. Melting
(cts/lb)
1,336.85 1,303.97
Nickel-Cath. free market. Plating
(cts/lb)
1,356.85 1,323.97
Mercury free NY (cts/Fl) 500.00 500.00
Titanium sponge 99.3% ($/lb) 15.50 15.50
Zinc Special High Grade (cts/lb) 115.52 109.62
Other US Prices 22.02.08. 21.02.08
Copper electrolyte produc. 381.05 370.55
E���FX R�������� R����
22.02.08. 21.02.08.
USA USD 1.4834 1.4709
Great Britain GBP 0.7540 0.7521
Canada CAD 1.4968 1.4913
Denmark DKK 7.4549 7.4541
Japan JPY 158.7000 159.2300
Norway NOK 7.8889 7.8626
Sweden SEK 9.3057 9.3083
Switzerland
in Euro - source: Reuters
CHF 1.6105 1.6223
26
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