Nordic Countries

Activity across yards remains steady but far from booming. Facilities are not full and competition for material is intense, with margins being pushed to unsustainable levels. This raises concerns as recovery becomes difficult once profitability has been eroded. There has also been an increased inflow of traders from other parts of Europe and even from India, which is adding further pressure to an already tight and highly competitive market.

Logistics providers are struggling with uneven material flows, underlining the current market challenges. At the same time, tariffs and geopolitical tensions are making planning increasingly difficult. On the manufacturing side, large-scale lay-offs offer another warning sign, directly impacting recyclers as the flow of available material declines.

Smaller companies appear to be under the greatest strain, squeezed both by global pressures and local regulations, while facing fierce competition from larger players. Larger firms also carry heavy cost structures, driving their demand for material, and yet overall supply remains insufficient. In short, competition is fierce, uncertainty is high and securing a margin remains a struggle.

The Nordic economies present a mixed picture. While household consumption, fiscal support and resilient labour markets provide a foundation for recovery, growth remains uneven and subject to global uncertainties. At the same time, and as mentioned, the recycling industry is facing intense competition, uneven material flows and increasing pressure from both international and domestic players, factors that will shape the market outlook in the coming months.

Across the Nordics, resilience in household spending and supportive fiscal policies offer reasons for cautious optimism. Yet for recyclers and traders, the combination of tighter competition, shifting global trade dynamics and uneven material flows will continue to put pressure on margins. Navigating this environment will require adaptability, efficiency and close attention to regional and global developments.

Growth in Sweden slowed earlier this year, but conditions for recovery are gradually strengthening. The labour market remains fragile but is expected to improve, while households are regaining confidence, thus supporting consumption. Sweden’s export sector is also benefitting as new global trade agreements take effect.

Danish GDP growth for 2026 is forecast at 2.3%, reflecting downward revisions linked to weaker industrial output, particularly slower growth in the pharmaceuticals industry. Despite this, the economy remains stable, underpinned by low unemployment, solid government budget surpluses, high household savings and forthcoming tax cuts that will strengthen purchasing power.

Finland’s economy is on a recovery path, though progress is sluggish. Lower interest rates and easing inflation are expected to improve household purchasing power. However, weak consumer confidence and strained public finances continue to weigh on consumption and investment. The manufacturing sector is showing some signs of recovery whereas the construction industry remains under pressure.

Norway is experiencing strong growth this year, primarily supported by household consumption. High wage growth, a robust labour market and an expansive fiscal policy provide solid prospects for the economy, despite global uncertainty. Inflation remains above the 2% target which, combined with strong growth, limits the need for interest rate cuts by Norges Bank.