Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of MRW, please enable cookies in your browser

We'll assume we have your consent to use cookies, so you won't need to log in each time you visit our site.
Learn more

BMRA: Metal recycling industry faces a 'difficult' year

The year ahead will continue to be difficult for the UK scrap metal industry but it is still in good health according to the British Metals Recycling Association.

BMRA director general Ian Hetherington told MRW: We anticipate 2010 will continue to be a difficult year.

We detect that most [metal recyclers] have planned pretty well and theyve cut costs according to the economic outlook. The industry is in good health and I dont see that there will be a huge rise in business failures.

However, they may come under stress when growth returns and the amount of working cash available is very low because of the recent low trading levels. Firms need to be able to buy more material in order to be able to grow, which puts a lot of strain on the working cash.

Hetherington explained that it is not just the UK industry that is experiencing difficulties and that those in Europe feel the same way. 

Furthermore, with the impending mothballing of the Teesside Cast Products plant at the end of January Hetherington commented: Any weakening of the UK steel industry is bad for business. Our members are very resourceful and have found new markets for this scrap but a strong home for steel scrap is very important to the UK industry. Everyone accepts there is over capacity and somehow or other this must be dealt with but I dont think this is the death knell to the UK industry.

He explained that in a global market the UK struggles to be competitive against low-cost producers. This is due to a higher UK cost base, an older infrastructure, which is possibly not as efficient as a result of older plants and equipment and significant over capacity across the world.


Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.