Ferrous Scrap Trade with Third Parties on Hold in Europe

SEATTLE (Scrap Monster): As per reports, several ferrous scrap recycling firms in northwest Europe have already stopped accepting ferrous scrap delivery from third parties. This is in the wake of rapid spread of coronavirus epidemic in several countries across the region. More companies are expected to place halt on scrap collection soon.

The prominent scrap recycling firms in Germany have announced their decision to close a large number of scrap yards, on account of notable decline in scrap intake. The recyclers plan to completely stop receiving third party scrap at the earliest. The ferrous scrap recyclers in Belgium too have put breaks on scrap receipts.

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The recycling firms anticipate further slowdown in local scrap demand, as major manufacturing activities in the region have already come to a standstill. The export demand too is expected to show weakness in the near-to-medium term. Recently, a number of automobile manufacturers in Germany had announced plans to temporarily stop production from the European facilities.

The lack of demand for scrap coupled with new restrictive measures by countries in the region may likely lead to temporary shutdown of many scrap recycling facilities in the Europe.