The Bureau of International Recycling (BIR) has sounded the alarm on cash flow shortages across the industry as companies are effectively rebuilding.
Ferrous scrap supplies are at 60-70pc of pre-pandemic levels, and while the retail purchase of demolition scrap are at healthy levels, according to BIR, new industrial scrap is scarce. Non-ferrous scrap inflows and copper sales are both also healthy, but aluminum sales have suffered, according to the association.
The ongoing COVID-19 crisis, for which reopenings are only a beginning, has thrust myriad industries into the throes of uncertainty. The automotive industry, an imperative sector in Germany’s economy, was shut down for a couple of months and consequently, the country’s GDP contracted by 2.3pc in Q1 2020. As of April 26, 751,000 companies had registered up to 10mn employees for short-time work.
The French automotive sector also declined by 88pc last month, and while dealerships and factories resumed activities, there’s a surplus of unsold cars.
Social distancing guidelines will remain staples of workplaces for the foreseeable future, but, as in the UK, businesses are recommencing activities. Non-essential shops, for example, are slated to reopen June 15, while Saudi Arabia targets June 21.