Posted on 10 Nov 2022
French scrap collection increased by 15% year-on-year in 2021 to 12.9 million tonnes, while sales volumes grew over 14% to 12.2mt, French recycling federation Federec director Manuel Burnand revealed at a conference this week monitored by Kallanish.
The sector saw large destocking in 2021 after the Covid-19 deadlock, higher prices and a deteriorating transport situation. Last year, 39% of scrap collected was shredded scrap, 35% was sheared and 8% new arisings.
While the sector is now feeling a strong impact from the Ukraine war and increasing energy prices, scrap suppliers are expected to post strong results this year mostly thanks to strong sales and prices in the first part of the year. This is despite many French steel producers significantly decreasing output and mothballing their plants.
Federec forecasts that in 2023 some government infrastructure projects such as the “Grand Paris” metro extension and works for the 2024 Olympic games should support demand for the steel value chain. Concern however remains over the impact of energy prices and the evolution of the international geopolitical situation. The possible European Commission ban on scrap exports would meanwhile bring a significant price fall and downturn in the sector.
France has 1,600 companies certified for scrapping end-of-life vehicles. The centres processed about 1.6 million vehicles in 2019, the equivalent of 1.8mt of scrap.
The vehicle reuse and recycling rate in 2021 was at 87.6%, higher than the European target of 85%, the federation concludes.
Source:Kallanish
