German scrap federation expresses optimism

Despite manufacturing and steelmaking sector setbacks in Germany, that nation’s Bundesvereinigung Deutscher Stahlrecycling- und Entsorgungsunternehmen e.V. (BDSV) ferrous scrap recycling association says it is optimistic about the remainder of 2019.

In an April 2019 summary, the BDSV points to a “fall in production figures of the German automotive industry in 2018 and the low water level on important inland waterways in the second half of 2018” as challenges that have recently faced the sector.

On the automotive front, “The diesel crisis and difficulties with the introduction of the new WLTP emission test standard have led to a fall in production in the automotive industry of up to 30 percent in some months,” states the association. “In contrast, the excellent construction industry had a stabilizing effect” on the steel and scrap sectors, says the BDSV.

Despite those negative factors, steel mills and foundries in Germany are increasingly relying on ferrous scrap, says the group. Shipments of German ferrous scrap to mills in that nation increased by 0.6 percent in 2018  compared to the previous year, even with the auto industry slump. “Steel scrap imports fell by 10.3 percent over the same period,” writes the BDSV. “This underlines the efficiency of the German steel recycling industry.”

The BDSV characterizes itself as cautiously optimistic for the remainder of 2019. “The basic dynamics of the German economy have slowed down,” states the association. “The problematic transport logistics and bottlenecks of skilled workers will continue to affect the steel recycling industry.” The BDSV also points to trade disputes and Brexit as factors that could harm “the export-oriented German economy.”

Nevertheless, the association says it sees the future of ferrous scrap as “positive overall.” Adds the BDSV, “The use of steel scrap will become increasingly important in achieving low-carbon steel production. By using around 24 million metric tons of steel scrap in steelworks and foundries, CO₂ emissions in Germany in 2018 have already been cut by around 36 million metric tons.”