The European Metal Trade and Recycling Federation (Eurometrec) has revealed that its members have seen a significant reduction in orders for non-ferrous scrap.
At its annual general assembly in Brussels recent, Eurometrec members discussed how the poor state of the economy in Europe was leading to reduced orders for secondary raw materials from the region’s mills and foundries. It warned that as a result prices of scrap have weakened and that there was a disincentive in some instances to collect and process scrap because of increasingly unattractive margins.
However, it was stressed that while there had been a significant decline in volumes of manufacturing scrap becoming available in the European Union as a result of production cutbacks, the scrap industry had managed to collect much that was available.
Eurometrec president Robert Voss said: “There is concern among Eurometrec members, and the many companies they represent, that demand for our materials from our European consumers may be weakening, which is likely to reflect on the viability of those companies continuing to expand their operations and could have an adverse effect on investment in their infrastructures, which is so vital at this time.
“The relationship between the thousands of companies represented by Eurometrec and the European smelters has always been a close one and I hope that their demand will remain strong, encouraging our member companies to continue to increase the processing and recycling of our vital raw material.”