A key figure has warned of a “perfect storm” for metal recyclers.
Shane Mellor, president of the Bureau of International Recycling’s (BIR’s) Ferrous Division, said a variety of factors had created a “challenging” period for scrap firms.
“This year has proved challenging for the recycled metals industry, with demand, pricing and sourcing all contributing to a perfect storm,” he wrote in his latest quarterly report.
“The subdued ferrous market continues its search for more positive sentiment regarding both furnace-ready feed and finished products.”
Meanwhile Paul Coyte, president of the BIR’s Non-Ferrous division, described a “complex market” for firms in this sector.
He cited “lower consumption but increasing base metal prices” alongside “international turmoil” and “worrying instability”.
However, Coyte added: “Economies are starting to ease interest rates to stimulate consumption and the medium to long-term trend remains bullish. Either way, metal merchants and consumers will continue to collect, upgrade and add value to support a circular economy.”
The BIR World Recycling Convention will take place next week in Singapore.
