|  

German C&I waste incineration market
proves robust through the Covid-19 crisis


For the moment, still stable in spite of the crisis.
10.07.2020 − 

The German market for commercial municipal waste treatment has proven relatively stable despite the coronavirus pandemic and the associated economic downturn. While the recycling markets were walloped by the crisis and some recycling value chains are on the verge of collapse, the waste-to-energy (wte) market has so far emerged relatively unscathed from the pandemic-related economic volatility.

Overall, capacity utilisation at the plants is relatively good and prices remain stable at a high level. Yet a number of market participants believe the current fairly balanced market situation is deceptive, noting it may be “the calm before the storm.” 

At the beginning of the year – prior to the coronavirus crisis – the wte market had already cooled considerably, market players told EUWID. “Last autumn, carmakers had already built up in-credible excess production,” said one plant operator with contacts in the automotive industry. In the second half of 2019, the economic environment in Germany weakened noticeably and more and more indicators were pointing to a downward trend.

Lockdown had only a relatively brief effect on wte market

When the coronavirus lockdown was imposed amidst these challenging market conditions, many players feared there would be significant drops in arisings of commercial waste. Large waste management companies expected commercial waste volumes sent to wte plants to decline by as much as 30 per cent, while some plant operators projected a collapse of as much as 50 per cent in a worst-case scenario and others were even more pessimistic.

The full report on the waste plastics market in Germany will appear in the next print and e-paper issue of EUWID Recycling & Waste Management (15/2020) out on 22 July. Online subscribers can access the report immediately here:

Energy from waste gate fees for C&I waste in Germany

Tags of this news:

previous − Recovered paper prices in Poland in free fall since June

Storm clouds on the horizon for German PET recyclers in July  − next