Germany & Poland

In today’s volatile economic climate, it is difficult to determine where to begin when describing the current state of the recycling market. Conversations with colleagues across the industry reflect a shared uncertainty: many ask where things are heading and my only response is that I, too, am navigating a room with the lights off. In times like these, it becomes clear how critical liquidity is; business partners must be chosen with great care because a deal isn’t truly done when recycled metal is sold, but only when payment for the delivery has safely arrived in your account.

Several global and regional developments are weighing heavily on our market. The ongoing trade tensions and tit-for-tat tariffs, the weakening US dollar and the shift in the copper market from a contango to a backwardation are only the tip of the iceberg. Geopolitical friction, including tensions between India and Pakistan, further amplify the overall instability. In parallel, structural issues - such as the lagging momentum in the construction industry and growing concerns about the pace of electrification in mobility - are undermining industrial activity.

Despite official figures still pointing to marginal economic growth, a closer look across key industries reveals inconsistencies. Sentiment surrounding the automotive sector in particular remains far from pre-crisis levels. Suppliers, especially in Europe, are facing intense pressure on margins. The industry is undergoing multiple transformations at once, but not all are proceeding as planned: global production is stagnating and leading to overcapacity, with Europe bearing the brunt; the transition to electric vehicles is progressing more slowly than expected, particularly in Europe and North America, and this is preventing economies of scale from materialising as projected; the rise of the software-defined vehicle, with increasing connectivity and driver-assist functions, presents a major opportunity but many suppliers are not yet adequately prepared; competition among OEMs is intensifying globally, with new entrants (especially in the electric vehicle segment) adding to the cost pressures on traditional suppliers; and geopolitical developments and regulatory changes - such as new tariffs and subsidies - are altering trade flows and global supply chains, further increasing levels of uncertainty.

The recycling sector feels these ripple effects acutely. Lower industrial output results in reduced metal demand, and many European smelters are facing underutilised capacities. In this context, maintaining open and functional global trade routes is critical. As local production slows, the ability to export and import materials across international markets becomes a cornerstone of our industry’s resilience.

While these are undoubtedly challenging times, history reminds us that our industry has weathered crises before. With continued adaptability and international co-operation, we can endure this period of uncertainty and prepare for the eventual recovery.