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Dramatic volume decline for recycling major ALBA

Germany – One of Germany’s biggest recycling companies, ALBA SE, expects ‘a considerable fall in turnover’ for 2016 owing to a continuation of extremely difficult market conditions.

During the first six months of this year, ALBA traded 695 000 tonnes of ferrous scrap compared to 1.1 million tonnes in the same period in 2015 while its non-ferrous volumes fell from 183 000 tonnes to 123 000 tonnes.

Turnover fell by Euro 304.3 million to Euro 317.1 million on the back of low prices and weak demand. ALBA SE, together with ALBA Group subsidiary Interseroh, expects to see ‘a significant fall’ in the volumes of iron scrap in the current financial year owing to what it calls ‘the difficult situation’ in the steel market.

‘Due to the unexpected, tense situation on the metal market, a considerable drop in non-iron metals is also being reckoned with,’ it adds. ‘The volumes and prices will, as expected at the outset of the year, mean a significant reduction in the turnover revenues.’

Despite difficult conditions in the steel and metals recycling segment, ALBA generated earnings before taxes of Euro 11.7 million in the first six months of 2016 compared to Euro 16 million in last year’s corresponding period.

According to ALBA’s ceo Axel Schweitzer, the company has managed to improve its margins in the steel and metals recycling segment through value-adding measures in conjunction with structural cost reductions. ‘The continuing crisis did, however, lead to a strong decline in the volumes being traded, and as result, to a significant reduction in the gross profit,’ he acknowledges.

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