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 to learn 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
Cautious Stockpiling Amid High Copper Prices, Finished Product Inventories Down Slightly Before Labour Day
18 hours ago
Cautious Stockpiling Amid High Copper Prices, Finished Product Inventories Down Slightly Before Labour Day
Read More
Cautious Stockpiling Amid High Copper Prices, Finished Product Inventories Down Slightly Before Labour Day
Cautious Stockpiling Amid High Copper Prices, Finished Product Inventories Down Slightly Before Labour Day
[SMM Copper Wire and Cable Weekly Inventory] Despite the approaching Labour Day holiday, overall enterprise stockpiling sentiment remained cautious due to high copper prices. As a result, raw material inventories of mainstream copper wire and cable enterprises in China edged up 2.58% WoW. Finished product inventories side, some wire and cable enterprises suspended quotations during the Labour Day holiday, and some end-users cautiously picked up goods in advance, driving finished product inventories down slightly by 2.42% WoW.
18 hours ago
Copper Wire and Cable Industry Sees Decline in Operating Rates Amid High Copper Prices
18 hours ago
Copper Wire and Cable Industry Sees Decline in Operating Rates Amid High Copper Prices
Read More
Copper Wire and Cable Industry Sees Decline in Operating Rates Amid High Copper Prices
Copper Wire and Cable Industry Sees Decline in Operating Rates Amid High Copper Prices
This week (April 24–April 30), the SMM operating rate of copper wire and cable enterprises was 65.9%, down 1.09 percentage points WoW. Copper prices hovered at highs this week, and earlier concentrated procurement had front-loaded some subsequent demand. Industry orders in the wire and cable industry remained weak, with operating rates continuing to decline. Next week, wire and cable industry operations will continue to pull back. Most enterprises will have a short Labour Day holiday break, with some choosing to cut production or maintain operations without shutting down. The operating rate is expected to continue falling by 3.12 percentage points WoW to 62.78%.
18 hours ago
Diverse Holiday Production Plans Among Chinese Wire and Cable Enterprises as Labour Day Nears
19 hours ago
Diverse Holiday Production Plans Among Chinese Wire and Cable Enterprises as Labour Day Nears
Read More
Diverse Holiday Production Plans Among Chinese Wire and Cable Enterprises as Labour Day Nears
Diverse Holiday Production Plans Among Chinese Wire and Cable Enterprises as Labour Day Nears
[SMM Wire and Cable Holiday Survey] As the Labour Day holiday approaches, SMM conducted an in-depth survey on holiday production arrangements among 13 mainstream wire and cable enterprises in China, with a combined sample capacity of 1.67 million mt. The survey showed that enterprises' holiday production plans were divergent. Most enterprises followed their usual practice of maintaining production during the holiday; some enterprises, however, chose to halt production during the holiday due to weakening orders, adjusting their production pace to ease finished product inventory pressure.
19 hours ago
New hope for Germany's troubled Scrap industry? - Shanghai Metals Market (SMM)