Germany’s recycling industry wants to be put on the government’s list of sectors eligible to have energy subsidies, Public Relations and Public Affairs Officer Bernd Meyer told S&P Global Commodity Insights Sept 12.
In a joint statement, Germany’s four main recycling associations — BDE Bundesverband der Deutschen Entsorgungs-, Wasser- und Kreislaufwirtschaft, BDSV Bundesvereinigung Deutscher Stahlrecycling- und Entsorgungsunternehmen, bvse Bundesverband Sekundarrohstoffe und Entsorgung and VDM Verband Deutscher Metallhandler und Recycler — have called on the government to include them in the so-called “energy containment program”.
They referred to a decision last year that saw the recycling industry removed from the list of eligible sectors as part of an update of the “Guidelines on State Aid for Climate, Environmental Protection and Energy 2022”.
Meyer said it was not clear why recyclers have been removed from the program as it was “completely contrary to the German government’s commitment to support recycling”.
Germany’s Ministry for Economic Affairs and Climate Action was not available for comment.
According to the companies’ joint statement, being removed from the program was wrong because the raw materials require energy to be collected and processed as not everything is done manually and because they are an important part of the circular economy key to cutting emissions as well as energies in the chain process to make steel.
The high energy costs are hitting the heavy industry with Eurofer, the association representing the European steel industry, that was among a few associations to send a joint letter to European Commission President Ursula von der Leyen on Sept. 7 urging her to take decisive EU-wide action on gas and electricity prices.
Earlier this month the largest European steelmaker, ArcelorMittal said it would temporarily shut three blast furnaces at its mills in Bremen, Germany, in Gijon, Spain, and in Dunkirk, France, also citing among the issues the surging energy costs.
Domestic ferrous scrap prices across Europe weakened on the month in September as recyclers pushed for flat prices during the month, but domestic mills demand remained weak, sources told S&P Global Commodity Insights Sept. 9. In Northern Europe, the Platts assessment for domestic shredded scrap was at Eur360/mt for material delivered to the mill Sept. 9, down from Eur362.50/mt in August.
— Annalisa Villa
