Business is becoming ever tougher for Germany’s steel recycling sector with companies increasingly affected by the weakening national economy. Less scrap is coming in and demand from steel mills and foundries for scrap has fallen.
Germany’s steel recyclers are projected to jointly process around 19 million tonnes of steel scrap this year.
However, two-thirds (66%) of Germany’s steel recyclers anticipate a further decline in business in 2020, according to the results of a survey conducted by German steel recyclers confederation BDSV among its 500-plus members. The main reasons given are the battered automotive industry and declining orders within mechanical engineering.
Trade developments
According to BDSV, there is still some uncertainty because of Brexit and the continuing trade dispute between China and the USA. Such issues particularly affect the export-oriented German economy.
On top of the slowdown in industrial production in Germany, companies in the steel recycling industry suffer from ever-higher costs for compliance with environmental regulations. ‘This leads to competitive disadvantages in the international environment,’ stresses the industry body.
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