Spain has been the country in Europe most affected by the second wave of Coronavirus infections. GDP forecasts for 2020 are for a contraction of between 10 and 12%, with the recovery projected to be slower. For 2021, GDP growth of between 4% and 7% is anticipated, with 2022 expected to see GDP return to the levels seen before the pandemic.
Supply is greater than demand for both copper and aluminium scrap, especially for the higher grades. Uncertainty and high unemployment levels are pushing down domestic consumption, which is estimated to have declined by 20% and has severely impacted orders at local plants, even leading to some closures in the automotive industry. As a consequence, higher discounts can be observed in scrap prices.
Demand for secondary aluminium has been maintained mainly through healthy orders from Asia. However, new regulations in China and rising infection numbers in India have meant a return to high levels of uncertainty within the market.
TSR Metals GmbH & Co. KG (DEU), Representative of the Young Traders Group