In a recent update published by BIR, a summary of the impact of the COVID-19 pandemic on the industries of various regions around the world is provided, with special focus on the scrap recycling. Below are key takeaways from it:
China –
Most manufacturers in mainland China are operating. Raw material was in short supply for a very small window, and then the window quickly closed again.
According to Xinhua News, the People’s Bank of China – the central bank of mainland China – has released a US$ 1 trillion fund in a bid to repair the damaged economy, of which 80% is going to businesses and industries.
The question, however, is from where will the demand come when other countries are still under lockdown.
Taiwan too is following broadly the same pattern as mainland China.
India –
The shipping demurrage and detention waiver announced by India’s Ministry of Shipping reflects the government’s great efforts to support the import/export sector. Amid a lockdown being declared across India and extended till 3rd May ‘20, many cities with higher cases have been marked as red zones, within which no movement is allowed.
Singapore –The country has quarantined 180,000 foreign workers, which must surely impact the generation, collection and processing of scrap. Another big issue is logistics and finding shipping slots.
USA –
Each state in US has its own mandate for opening or remaining closed. The US scrap industry is essential and presently functioning. The industry can do no more than adapt to the situation regionally:
1. the West and East coasts are far more sensitive and reactive to the international situation and the transboundary movement of scrap from producers and consumers.
2. the middle of the country, meanwhile, is focused more on the domestic producers of scrap and on domestic consumers. Most of the country will be reassessing the situation on May 1.
Europe – Scrap availability throughout the European continent fell significantly but has now begun improving week by week. Oil prices are not helping to restore confidence; instead, people are nervous of further volatility within the raw material markets
UK –
With waste classed as an essential industry and recycling still considered a waste activity, recycling companies are allowed to continue to trade.
The British Metals Recycling Association has issued an advisory for members to show to council workers and police officers should they or their employees be stopped.
Government departments are supporting the position that anyone involved in the collection, processing, recycling and disposal of waste, including scrap metal, is allowed, if not encouraged, to continue operating.
Middle East –
The situation is quite similar across most of the GCC countries. Recycling Yards are open for those who can afford to finance day-to-day activities but scrap inflows are down to 30% of the norm because:
Overall sentiment is low as it is not profitable to run with a full workforce when volumes are so reduced;
Lockdowns in major cities have been extended in some instances until further notice and commuting permits must be obtained in advance from the Road & Transport Authority, otherwise legal notices will be issued.
Imports into and exports out of the Middle East have not stopped but shipments to India – the main market for the region after China – are not feasible owing to severe congestion at Indian ports and uncertainty over how long demurrage and detention costs will be waived. Exports to India have virtually stopped while shipments to China remain cautiously ongoing.
Overall sentiment in the Middle East is depressed and activities have been subdued following the oil price crash to historic below-zero levels.
In Bahrain, Scrap yards are generally closed as they fall into the category of non-essential businesses; many companies, both local and international, are closed and some people are working from home, including government officers.
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