Portugal has been in a strict, indefinite lockdown since mid-January. Even when industries are in operation, low consumption levels are having a great impact on the economy and on the availability of scrap. The country’s GDP fell by around 10% in 2020.
The difficulty in getting empty container space on ships sailing from Portugal has forced export cargoes to be redirected.
In Spain, the drop in tourism is causing problems for the domestic economy, with GDP dropping around 12% last year. Current restrictions are not as severe as in Portugal, allowing a slightly more normal life.
Most industries remain in operation and healthy demand is coming from local copper smelters. Regarding aluminium, especially secondary, domestic foundries have had some difficulties in maintaining competitive prices and buying material owing to the export price increases recorded in recent weeks. The automotive industry is facing severe problems in the electronic parts supply chain, leading to lower demand and a reduction in aluminium ingot and scrap prices after a year-end rally.
José Martin Neumann
TSR Metals GmbH & Co. KG (DEU), Representative of the Young Traders Group
Country
Portugal & Spain
