Despite the fact that the Iberian region is one of the most affected by the COVID crisis in Europe, there has been a significant activity boost within the recycling industry owing to the rise in prices for all non-ferrous metals. These increases have injected a large supply of material into the market, which has peaked in recent times.
Most shredders are working at full capacity following the increase in ferrous scrap prices, and this has led to more non-ferrous shredder products arriving on the market. Some domestic aluminium and copper smelters have already covered their purchasing needs - mainly with higher grades - until February 2021.
As in August, the main automotive plants have closed for the whole of December. The aeronautical industry continues to lack clear signs of recovery.
Both Spain and Portugal are still implementing local restrictions on movements, although these have yet to impair the transportation of material. Exports have taken the oversupply of scrap, thus fitting with the growing demand from Asia. China in particular has bought large quantities of material under its new classifications while other Asian countries are also providing strong demand, especially for secondary aluminium scrap.
TSR Metals GmbH & Co. KG (DEU), Representative of the Young Traders Group