New hope for Germany's troubled Scrap industry?

Published: May 3, 2016 10:17
Metal recyclers in Germany have never judged their economic situation to be worse than it is at present.

GERMANY May 01 2016 10:13 AM

By Martijn Reintjes 

Metal recyclers in Germany have never judged their economic situation to be worse than it is at present, concludes metal traders federation VDM on the basis of a survey of its members. According to the industry body, 23% of responding companies said the present state of business was worse than in April 2015 and at its worst since 2013. 

A quarter of scrap firms foresaw a further downturn in business caused by the continuing weak performance of the whole industry. According to VDM, which represents some 80% of all German enterprises processing and trading non-ferrous scrap, ‘significant’ Chinese overcapacity, weak European industrial production and lower commodity prices have continued to challenge traders and recyclers.

‘However, there is no reason to be completely pessimistic,’ states VDM president Thomas Reuther. ‘There is light at the end of the tunnel. 13% of our members expect that the situation will improve in the upcoming months - at least 3% more than a few months ago.’

The survey also shows concern among 50% of recyclers in Germany about the ‘critical state’ of supply of non-ferrous scrap, with one-third anticipating that this trend will continue whereas only 9% expect an improvement in the situation. This outlook applies to copper as well as to aluminium and zinc.

‘In the course of production processes which are directed more and more towards sustainability, non-ferrous scrap is increasingly asked for; this leads to the impression that there is less scrap available,’ comments Reuther.

Taking into account the weak economic dynamics, 21% of traders are planning to reduce their inventories while 15% intend restocking during the second quarter of 2016, concludes the VDM summary.--Recycling International


Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Copper Cathode Rod Orders Expand, Inventories Decline; Production to Increase 2.31% WoW
55 mins ago
Copper Cathode Rod Orders Expand, Inventories Decline; Production to Increase 2.31% WoW
Read More
Copper Cathode Rod Orders Expand, Inventories Decline; Production to Increase 2.31% WoW
Copper Cathode Rod Orders Expand, Inventories Decline; Production to Increase 2.31% WoW
[SMM Copper Cathode Rod Flash] New orders continued to expand, and with the holiday approaching, finished product inventories destocked at a faster pace. Production willingness at copper cathode rod enterprises strengthened, and the operating rate is expected to rise 2.31 percentage points WoW next week.
55 mins ago
Copper Rod Enterprises Restock as Prices Fall; Finished Product Inventories Drop Ahead of Holidays
57 mins ago
Copper Rod Enterprises Restock as Prices Fall; Finished Product Inventories Drop Ahead of Holidays
Read More
Copper Rod Enterprises Restock as Prices Fall; Finished Product Inventories Drop Ahead of Holidays
Copper Rod Enterprises Restock as Prices Fall; Finished Product Inventories Drop Ahead of Holidays
[SMM Copper Cathode Rod Flash] The decline in absolute prices prompted copper rod enterprises to restock intensively, with raw material inventories rising MoM. The pullback in copper prices, coupled with the approaching Mid-Autumn Festival and National Day holidays, encouraged downstream users to stockpile in advance, driving finished product inventories down significantly MoM.
57 mins ago
Copper Cathode Rod Producers' Operating Rate Surges 4.32% WoW Amid Price Pullback and Restocking Rush
1 hour ago
Copper Cathode Rod Producers' Operating Rate Surges 4.32% WoW Amid Price Pullback and Restocking Rush
Read More
Copper Cathode Rod Producers' Operating Rate Surges 4.32% WoW Amid Price Pullback and Restocking Rush
Copper Cathode Rod Producers' Operating Rate Surges 4.32% WoW Amid Price Pullback and Restocking Rush
[SMM Copper Cathode Rod Flash] The operating rate of copper cathode rod producers rose 4.32 percentage points WoW this week, mainly because the pullback in copper prices exceeded market expectations, prompting downstream buyers to actively price and restock, with new orders at copper cathode rod enterprises seeing a significant surge. By segment, operating rates at end-user sectors such as wire and cable and enamelled wire both moved higher, but overall demand recovery at wire and cable enterprises still fell short of expectations.
1 hour ago