Germany

Germany’s industrial sector continues to experience a downturn, as evidenced by latest data from the Federal Statistical Office. In May, the sector saw a further decrease in orders, with a 1.6% drop compared to the previous month. This marks the fifth consecutive month of decline. Analysts had anticipated a modest increase of around 0.5%. Year over year, orders have plummeted 8.6%.

According to the Federal Ministry for Economic Affairs and Energy, the data suggest a rather subdued industrial outlook for the coming months. “Only with the further recovery of global trade and the gradual revival of demand for industrial goods will order intakes likely stabilize,” it noted.

The metal market has entered a quieter phase owing to the summer recess at many plants. Remarkably, the official price for 226 ingot has decreased for the first time in a very long period. Expectations of any surprising demand shifts over the summer remain low. Despite this slowdown, availability of recycled raw materials remains significantly limited.

Germany is facing increasing logistical challenges as ports are experiencing more frequent strikes, often with little warning. These disruptions are causing substantial planning difficulties for recycling operations. The unpredictable nature of the strikes exacerbates the problem, making it challenging for businesses to maintain smooth operations and meet their supply chain demands.