Scrap volumes increase slightly across the globe

In the last couple of weeks, many countries have started to loosen restrictions related to the COVID-19 pandemic. According to the Bureau of International Recycling (BIR), Brussels, scrap generation appears to be improving in some parts of the world as restrictions are loosened. 

The association received contributions from BIR President Tom Bird, its divisional presidents and BIR committee chairmen on how several nations are adjusting in response to the COVID-19 pandemic.

China and Southeast Asia

China, Hong Kong and Taiwan are slowly returning to normal, as COVID-19 cases in China have been declining sharply over the past month, while no new cases have been reported in Taiwan for two weeks. In these nations, nonferrous metals volumes appear to be climbing about 20 to 30 percent compared with the previous week, BIR reports as of May 12. The buying mood is being affected by the prospect of China’s reclassification of “recycled material,” which is scheduled to come into effect for brass, copper and cast aluminum alloys July 1. 

In addition, some Chinese factories are resuming production and, as a positive sign, prices of polypropylene (PP) and styrenics have increased over the last two weeks, BIR reports. 

Europe

BIR says there is some uncertainty surrounding plastics recycling in Europe. Prices are still low owing to the oil price slump and huge stocks that are overhanging the market. However, some companies are being allowed to restart production as some lockdown restrictions are canceled, and demand is slowly increasing. The automotive industry is expected to restart in Europe, which will help to consume recycled raw materials. European plastics recyclers aren’t sure how supply will develop in the coming weeks. 

With paper recycling, about 77 percent of plants in France are open, and 3 percent are opening by appointment, BIR reports. Looking to the wider picture, collection in France is down by 20 percent for paper and cardboard, 37 percent for industrial waste, 82 percent for construction waste, 24 percent for plastics, 48 percent for wood and 75 percent for metals. 

In Greece, the e-scrap sector is returning to normal as suppliers gradually restart their businesses and improve sourcing of raw materials, BIR reports. 

In addition, issues are emerging with securing enough material as several months with fewer cars and trucks on the road have served to reduce the availability of end-of-life tire materials in Europe.

India

In the ferrous scrap sector, businesses are slowly returning to work and demand is picking up in this nation. However, banking is the main issue in India, with delays reported in getting letters of credit opened. 

Most export-oriented rubber clients in India resumed operations a couple of weeks ago and are now ordering as much as they had prior to the COVID-19 outbreak. 

United Kingdom

U.K. Prime Minister Boris Johnson announced some changes to lockdown measures May 10. In effect, the rule about working from home where possible is retained unless the job requires a person to be at a place of work, such as with construction and manufacturing, BIR reports. Social distancing must be maintained, and those going to work are being asked to avoid the use of public transportation where possible. Some primary schools could reopen June 1, but most secondary schools will not return until September. Restaurants and cafes are to remain closed until at least July. Unessential shops, hairdressers and gyms are to remain closed with no new measures introduced. However, the U.K.’s engineering and automotive sectors are expected to begin opening in a few days.