Metals recyclers expect uncertain 2011

That is the warning from the president of the British Metals Recycling Association, Michael Oppenheimer, who was speaking at the trade body's annual dinner last week (December 8). Mr Oppenheimer also claimed that environmental policy at a European level could increase the sector's regulatory burden.

 

Given the mixed medium-term economic outlook, one wonders about the longer term availability of ferrous scrap in the UK?

 
Michael Oppenheimer, BMRA 

In his address to the Birmingham event, Mr Oppenheimer, who was elected as president in June (see letsrecycle.com story), said 2010 had been a “difficult but nonetheless successful” year for the metals recycling industry.

But, he said that, looking forward to 2011, “we can safely predict that things will be uncertain”.

In particular, he explained: “In two sectors crucial to the success of our metals recycling industry, construction and car production, there have been clear signs of recovery throughout 2010.”

“However, draconian cuts in public capital budgets over the next three years will seriously impact on construction and there are concerns that the fear of future job losses, if not the reality, will inhibit consumer spending and hinder further automotive sector recovery.

Mr Oppenheimer also highlighted the short-term and uncertain markets for steel in 2010, and noted that a shortage of scrap had “underpinned” prices in many ferrous markets.

And, he asked: “Given the mixed medium-term economic outlook, one wonders about the longer term availability of ferrous scrap in the UK?”

Regulation

Addressing the issue of regulation affecting the sector, Mr Oppenheimer said that the “sheer plethora” of rules relating to metals recycling continued to be a problem, particularly for smaller sites.

However, he also claimed opportunities had been created for achieving a “major reduction” in this burden by the new coalition government coming to power.

“This year our Westminster representational work has been dominated by our desire to influence a new, and very different, government,” he said.

“This has meant that our established points of influence – Backbenchers, Select Committees, Special Advisors and last but not least, Ministers, have changed, with most ministers and staff in government for the first time trying to find a way of working.”

Europe

Mr Oppenheimer raised concerns over how the new government would approach European issues and, in particular, a continuing growth in the “environmental policy agenda”, which he said was being considered by the European Parliament, Commission and some Member States.

He warned: “Unless checked, this agenda will grow unheeded and regulation will follow, and I could see a time when freedom of trade outside the EU could be threatened where a secondary metal was designated as a scarce or strategic resource.”