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German steel scrap scene:
‘Rough weather ahead’

D e m a n d s h r u n k f ro m b a t t e re d c a r i n d u s t r y

Business is becoming ever tougher for Germany’s steel recycling sector with com-

panies increasingly affected by the weakening national economy. Less scrap is

coming in and demand from steel mills and foundries for scrap has fallen.

This year, Germany’s steel recyclers
will together process around 19 mil-
lion tonnes of steel scrap.

INVESTMENT DOWNTURN
The BDSV survey exposes a slowdown
in investment. More than four in 10
(44%) of the respondents plan to
invest less, more than twice the pro-
portion (20%) saying the same thing a
year ago.
German recyclers are finding it
increasingly challenging to recruit the
right people to work at the yards.
Three-quarters (77%) say it is tough
finding new employees. To fill the
‘workers gap’, even more (80%) see
hiring people from Eastern Europe as
a solution.

LOGISTICS HEADACHES
Germany’s steel scrap recyclers remain
disappointed with the country’s trans-
port policy. They say German railways
do not have enough capacity and the
situation has been like that for at least
ten years. The majority describe the
situation as negative, ranging from
‘bad’ to ‘catastrophic’.
‘Our members could deliver 20%
more steel scrap if capacity was suffi-
cient,’ states BDSV. The confederation
has again urged the government to
come up with a workable solution.

TOWARDS THE DIGITAL ERA
Digitalisation is increasingly taking
over everyday work in the German
steel scrap sector. Digitalisation proj-
ects have been implemented in 76%
of recycling companies with most
(84%) completed satisfactorily. BDSV
says some projects brought problems,
mainly because employees found the
digital move hard to accept or costs
turn out to be higher than expected.

MUNSTER GATHERING
The results of BDSV’s survey were pre-
sented during the industry body’s
annual gathering in the city of
Münster in late November. These
pages carry photos from the event.

Also check the Ferrous market analysis
on pages 50-53

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 bat-
tered automotive industry and declin-
ing orders from steel producers.
According to BDSV, there has been
uncertainty because of Brexit and the
continuing trade dispute between

China and the USA. Such issues par-
ticularly affect the export-oriented
German economy.

STRICTER RULES
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.

a u t h o r Martijn Reintjes

BDSV’s Andreas Schwenter and Stephan Karle of Karle Recycling arrive by special bike at the industry body’s year event in Münster.

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