The noticeable declines in arisings of new ferrous scrap are clear signs of an economic slowdown, one scrap trader told EUWID. Across the board, less material than usual is arising at the generation points, say the market participants surveyed by EUWID. Volumes were usually down by between 10 and 20 per cent, but in some cases intake at certain yards had come to a complete stop.
This was primarily true for the automotive industry, where production is down as a result of the diesel crisis, the problems associated with the introduction of the new WLTP emission standard and the slump in car sales to China. Short-time work was looming or had already started. The slowdown for automakers was also having an impact on production at upstream parts suppliers, respondents said. However, in other steel-processing industries such as machinery and tool manufacturing, arisings of ferrous scrap are still mostly described as normal.
The crisis in the automotive sector is also affecting the ordering at the steel mills, according to scrap traders. Order intake for quality steel was weakening and the order backlog was shrinking, they said.