Bulgaria Exported 80% of Its Metal Industry Output in 2021

Jerusalem, 6 November, 2022 (TPS) -- PERNIK, SOUTHWESTERN BULGARIA, 05.11.2022 (BTA)
Bulgaria produced ferrous and non-ferrous metals and metal products valued at more than BGN 10 billion in 2021 (14-15% of overall industrial production) and exported BGN 8 billion-plus worth of them, accounting for 12% of the country’s total exports, Bulgarian Association of the Metallurgical Industry (BAMI) Executive Director Politimi Paunova said in an interview for BTA.

In value terms, the sector’s output ranks sixth among the 27 EU Member States. Bulgaria manufactures more than 8% of the EU’s electrolytic copper and over 7% of the bloc’s lead.

The country’s ferrous metallurgy grew by 112% last year, and the non-ferrous metallurgy by 113%, Paunova said. The average wage in this industry is double the average in manufacturing. The average pay rise in recent years has been some 10%, and a rise of at least 20% is expected for 2022, which has already been achieved in part of the enterprises.

The metal industry in Bulgaria has good prospects, considering the huge increase in demand for base metals needed for the implementation of the Green Deal and digital transformation. To achieve this, however, new investments are needed in technological advances and competitive production quality and costs. Incentives have to be offered for the circular economy and for electronic waste recycling, which will increase efficiency and will reduce this country’s dependence on inputs imported from third countries, the interviewee noted.

Raw materials sourced in Bulgaria approximate 25% of the total, and ever more recyclable resources (both local and imported) are processed. In the non-ferrous metal industry, this quantity has grown by 20% over the last five years and now stands at over 160,000 tons. The largest amount of waste that is reused comes from dead lead-acid batteries, which already account for over 40% of the total lead production. Steel is made only from ferrous-metal scrap. The recycling industry receives between 1.2 and 1.4 million tons from local sources. A substantial part of this scrap is exported, while the steel industry imports some of its inputs, mainly from neighboring countries.

The spike of energy prices since the second half of 2021 have resulted in a decline in production and substantial financial losses for zinc and lead manufacturers. The producers of ferrous and non-ferrous metal manufactures achieved growth thanks to their high-tech output for construction and the automotive industry. The increased import from third countries, where EU legislation does not apply and energy is cheap, is adding pressure on the sector.

Between BGN 500 million and BGN 1 billion-plus have been invested in large metallurgical companies, Paunova pointed out. The construction and reconstruction of facilities require hundreds of millions in bank loans, and they are repaid from the annual profits which are far from guaranteed, Paunova said.