n° 171 – March 2021

According to the experts, the Spanish economy will contract by 0.4% during the first quarter of this year - a major difference to the 0.5% expansion projected previously and a clear sign that reactivation of the economy is taking longer than expected. For the rest of 2021, the economy is projected to expand by 1.7% in quarter two, 2.9% in quarter three and 1.9% in quarter four. Key to this, however, is that there is no continued delay to the vaccination programme and that tourism can be reactivated for the summer.

Price increases, especially on copper-related items, have led to the sale of almost all of the material held in stock. On the other hand, the collection rate has slowed owing to measures restricting mobility and industry not yet having recovered in the region. The higher prices have also put pressure on the financing costs of local foundries as well as scrap dealers.

The strong demand for non-ferrous scrap in Asia and the doubts surrounding supply of material have created room for medium- and long-term export agreements. The sustained highs in maritime transport rates are making Asia generally less attractive than some European smelters, although there is currently no evidence of a problem with equipment availability.

José Martin Neumann  - José Martin Neumann  (Portugal & Spain)

José Martin Neumann

TSR Metals GmbH & Co. KG (DEU), Representative of the Young Traders Group

Portugal & Spain
n° 171 – March 2021