Lower scrap collection due to lockdown to pose major challenge to consumers

摘要

A drop in scrap collection due to introduction of quarantine measures to combat COVID-19 is becoming a major challenge for steel scrap market participants in CIS countries. Small and medium companies accounting for the bulk of scrap collection were affected the most by vehicle traffic restrictions, nearly a total suspension of scrap collection from private individuals as well as administrative restrictions in a number of regions. Major market participants also reported a sizeable drop in scrap turnover. As a result, scrap collection plummeted in Russia's federal subjects by 50-80% depending on structure and scrap supply, sources in the industry reported. The situation in Ukraine is not much better, as some dismantling operations are being suspended, while activity of small scrap collectors depends on the situation.