Zinc prices slightly improved in July, while lead prices remained on historic low levels, said Recylex in their financial statement released July 30. The prices of used lead-acid batteries did not decline in this period.
Recylex is challenged by the uncertainty around its German subsidiary Weser-Metall’s insolvency procedures which is a major buyer of Recylex’s secondary metals. The company is focusing on expanding the customer base and stabilizing operational activities alongside the on-going legal procedures. A potential solution for Weser-Metall will take several months, according to the company’s release.
In H1 (Jan-June), France-headquartered Recylex’s lead segment contributed €72.1mn ($85.7mn) to sales, which is a decline of 23pc from H1 2019 due to deconsolidation of its German entities. The company’s German subgroups filed for insolvency under the German Law and thus Recylex has presented its financials on a pro forma basis.
Recylex S.A recycled 31,9000mt of used lead-acid batteries in H1, a decline of 16pc from 2019. Recylex continues to supply materials to Weser-Metall GmbH. Slow recovery of the automotive sector will highly impact the lead segment’s activity in H2, said the company.
Contribution of the lead segment is up by 1pc in H1, excluding the insolvent bodies. Zinc segment contributed €20.6mn, down 28pc on pro forma basis and down 53pc from the prior year period. The company’s total sales stood at €102mn, which is a decline of 9pc on pro forma basis and 34pc, including the German groups. The company’s Nordenham smelter was shut from July 18 to July 21, 2020, to due to financial difficulties.