Ferrous Scrap Flows Take a Hit in Europe

SEATTLE (Scrap Monster): The European ferrous scrap flows recorded sharp decline during the month of March this year. The scrap flow from various sources slipped by almost 30% compared with the previous year.

The restrictions imposed by various governments are likely to lead to further fall in scrap flows in the coming months. The estimates provided by industry participants estimate approximately 40-50% year-on-year fall in European scrap flows in April this year.

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The decline in scrap flow was mainly driven by market uncertainties during end-February and early-March this year. However, escalating cases of coronavirus infections resulted in regional and nationwide quarantine, thereby forcing closure of major commercial activities and lockdown of several manufacturing facilities. The scrap yards and metal recycling centres across the region have reportedly stopped accepting scrap materials from third parties on fears of the virus.

The scrap delivery from car makers and other manufacturers are expected to see drastic dip by end of March this year.

Meantime, the supply of demolition scrap, which has already fallen by up to 40% during this month. Tighter credit supply and increased restrictions on public movement are likely to lead to notable decline in scrap from demolition sector in the near future.