COVID-19 has caused a global economic fallout that will take many countries years or even decades to recover from. But amidst all the debt and despair, there’s one silver lining for Australians; and that’s the surging iron ore prices that have now climbed to a record high.
Iron Ore and Its Purposes
Iron ore is a key ingredient in the making of wrought iron, cast iron, stainless steel and carbon steel. In fact, ferrous metals are only called ferrous metals because they contain a certain percentage of iron. On the other hand, non-ferrous metals are materials which do not contain iron, or only contain it in very small amounts.
Ferrous metals, particularly steel, are used across a variety of different industries. It’s high strength and corrosion-resistant properties make it ideal for application in a number of different areas, including:
- Buildings and Infrastructure
- Electrical Appliances
Why We’re Seeing a Surge
As you’re probably already aware, Australia is the largest exporter of iron ore in the world. It just so happens that this is also our largest source of trade revenue. Although we sell our ore to a number of different countries, China is undeniably our biggest buyer since they are also one of the largest manufacturers of steel in the world; and at the moment, China’s need for steel, thus iron ore, is high.
In response to the devastation caused by the COVID-19 pandemic, China has developed an incredible infrastructure plan that will seek to stimulate job creation and prepare for sure changes in the global economy. With plans to construct new digital infrastructure, including 5G networks, Internet of Things, research and development institutions and more, China’s demand for steel, and therefore iron ore, is contributing towards Australia’s largest source of trade revenue.
What It Means for Western Australia
For the time being, the surge in iron ore prices has contributed towards an unexpected surplus budget for Western Australia, of about $5 million as revealed by premier Mark McGowan. Whilst this extra revenue is indeed a welcome surprise in these trying times, there are calls for it to be spent wisely.
Trade Scrap Ferrous Metals for Cash at Allied Metal Recyclers
Got unwanted metal you want taken off your hands? At Allied Metal Recyclers, we deal with both ferrous and non-ferrous metal materials, providing you with a fast and efficient solution for getting rid of your scrap steel, copper, brass and more. Utilising the latest sample analysis technology available, we can always guarantee the best price possible in exchange for your scrap. After all, as one of the most common metal materials, it’s important to encourage steel metal recycling wherever we can. We assist in doing this by making the process as easy and convenient as possible for businesses all throughout Perth.
To organise a collection bin or a yard clearance service, contact Allied Metal Recyclers now!