SEATTLE (Scrap Monster): The Germany-headquartered scrap metal recycling federation BDSV has provided a recap of ferrous scrap industry conditions in Germany. The views were expressed during the Annual Conference held online on Thursday, November 5th.
BDSV cited that German economy had lost its growth momentum in 2019. The Covi-19 pandemic and the measures to contain them have caused the economy to enter into a phase of recession in 2020. This has led to slowdowns in almost all manufacturing sectors, including automotive industry.
The country’s ferrous scrap sector was hit hard by the crisis. The supply side as well as the demand side was impacted badly. Germany reported serious decline in scrap generation during spring this year. The rebound has not taken scrap flows back to 2019 levels. The market is likely to achieve its pre-Covid-19 levels only after 2021, although one-third of the surveyed companies predict better operating conditions and business situations in 2021 as compared with the current year, BDSV said.
Germany posted 16% decline in steel output during the first three quarters of 2020, thereby escalating the huge decline in demand for scrap. The foundry industry production too has reported a decline by one-third during the initial half of the current year.
