Recylex still on the downswing

Consolidated sales for the six-month period to June 30, 2016 totaled €167.8 million, a decrease of 15% on the first six months of 2015.

During the first half of 2016, Lead sales accounted for 71% of consolidated sales.
They totaled €119.1 million, down 15% compared with the first half of 2015.
Despite a favorable base of comparison given the maintenance shutdown in the first six months of 2015, the segment was impacted by the fall in lead prices (-8%) and by lower production volumes (-7%) given the reduced availability of materials for recycling.
The Group made adjustments to its input mix, making up to some extent for the shortfall of scrap batteries for recycling (owing to the mild weather conditions over the winter) by using lead concentrates (with a lower lead content than the secondary materials in scrap batteries) as part of its tolling arrangements.

Zinc sales accounted for 19% of the Group’s consolidated total during the first six months of 2016. In the first half of 2016, they totaled €32.3 million, a decrease of 12% compared with the same period of 2015. Restated to include the Group’s share of 50%-owned Recytech SA’s sales, the segment’s sales came to €39.9 million, down an identical 13% compared with the same period of 2015. This decline was chiefly attributable to the strong decline in zinc prices compared with the first half of 2015, partly offset by higher production. Harz-Metall GmbH’s electric arc furnace dust recycling business recorded an increase in its sales, despite the fall in zinc prices over the period, owing to a favorable base of comparison as a result of the maintenance shutdown in the first half of 2015. Therefore, total Waelz oxide production in the segment, which includes the Harz-Metall GmbH subsidiary and Recytech, rose 9% to 34,884 tonnes in the first half of 2016 from 32,132 tonnes in the first half of 2015. The scrap zinc recycling business was held back by the fall in zinc prices over the period, which weighed on selling prices. Norzinco GmbH’s zinc oxide production increased to 11,714 tonnes in the first half of 2016, from 11,417 tonnes in the same period of 2015 (+3%).

Special Metals contributed 5% of the Group’s consolidated sales in the first half of 2016.
PPM Pure Metals GmbH reported sales of €8.0 million, down 29% on the first half of 2015.
In spite of a slight increase in high-purity arsenic sales, this strong decrease was chiefly attributable to lower germanium sales volumes, coupled with the ramp-up in tolling for this metal, the steep decline in indium prices and, to a lesser extent, lower gallium sales.

Plastics sales accounted for 5% of consolidated sales in the first six months of 2016.
They totaled €8.4 million, down 12% compared with the first half of 2015.
During the first six months of 2016, the segment’s total production of recycled polypropylene dropped 15% to 8,058 tonnes from 9,433 tonnes in the first half of 2015.
Due to persistently tough conditions caused by the low level of oil prices, C2P in France recorded a modest decline in its sales volumes. Even so, its selling prices held up well thanks to its strategy of diversifying its business portfolio and of moving its products upscale. Conversely, C2P in Germany posted a decline in its sales volumes owing to the reduced appeal of recycled materials compared with primary materials at the current level of prices.