Understanding the Metal Scrap Trade – A $100 billion industry!
A $100 billion plus industry and growing every year, not many are familiar with the Metal Scrap that is widely traded across the globe.
Scrap is not waste
Scrap consists of recyclable materials left over from product manufacturing and consumption, such as parts of vehicles, building supplies, and surplus materials. Unlike waste, scrap has monetary value, especially recovered metals, and non-metallic materials are also recovered for recycling.
Ferrous Metal Scrap
Ferrous metals are able to be recycled, with steel being one of the most recycled materials in the world. Ferrous metals contain an appreciable percentage of iron and the addition of carbon and other substances creates steel.
To explain all the types and details of the Ferrous Iron & Steel Scrap, our team has prepared a Presentation at SlideShare. Here’s the link - http://www.slideshare.net/azpiretrading/ferrous-iron-and-steel-scrap
Scrap Metal Prices Update 2016
After a dismal end to 2015, ferrous scrap metal prices seem to be rebounding. The latest surge in prices is attributed to higher demand in parts of Asia and North American markets. Copper and Aluminum also saw sizable gains due to restricted supply.
So, is this a short term adjustment or a sign of further scrap metal price increases to come?
According to the World Steel Association, crude steel production in January 2016 was down 7.1% compared to January 2015. The biggest deceases in January volume were seen in China (-7.1%), Japan (-2.8%), the U.S. (-8.8%), India (-1.2%), South Korea (-4.5%), Russia (-10.6%) and Brazil (-17.9%).
The only major producers to see an increase in January production was Turkey (0.8%) and Ukraine (3.6%).
Worldwide steel production has seen a modest increase of 1.1% in January 2016 compared to December 2015.
Although the recent scrap steel market has seen some signs of recovery, it should not be taken as a clear sign of good times ahead just yet. This uptick in prices should none the less take some much needed pressure off local scrap dealers and suppliers.