Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

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.

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