How has Coronavirus Impacted the Scrap Metal Market?

How has Coronavirus Impacted the Scrap Metal Market?

How has Coronavirus Impacted the Scrap Metal Market?

The COVID-19 pandemic has undeniably impacted almost every single industry in a completely different way. For certain sectors, it’s been an absolute game-changer. Think online entertainment streaming services, ecommerce marketplaces, delivery services and telecommunications platforms, for example. On the other hand, some industries have really taken a hard hit as a result of the stringent restrictions put into place, not to mention the economic shutdown. Of course, airlines and tourism, hospitality, events and leisure facilities around the world have definitely been some of the most adversely affected by this ongoing crisis.

When it comes to the scrap metal industry, we’ve also been having a pretty rough ride. Thankfully however, we haven’t been entirely written off. Here’s how coronavirus has impacted the scrap metal market in 2020:

Declining Supply and Demand

First off, let’s touch upon the fact that some countries have deemed scrap metal as an essential import, whilst others have deemed it as non-essential. Therefore, those countries that are not currently accepting scrap metal imports have contributed towards a lesser demand for scrap metal materials. Aside from this, the fact that manufacturing and construction has declined in certain parts of the world has also contributed towards this fall in demand. As discussed in one of our previous posts, one of the key factors that affects scrap metal pricing is supply and demand. Consequently, as a result of declining demand, scrap metal prices would only decline alongside it. 

In addition to this, countries that are in full lockdown may have ceased activity on some of their scrap yard sites, or at the very least, chosen to operate at a reduced capacity. Moreover, there are some countries, such as South Africa, who chose to put a ban on scrap metal exports altogether, in order to safeguard local supply. Undoubtedly, all of these factors have worked to affect the scrap metal market by causing a reduction in worldwide supply and henceforth, a rise in prices.   

Supply Chain Issues

For those countries that are still accepting imports and relying on others in order to provide their scrap metal materials, supply chain issues are still very prominent. Lack of labour and delays on port clearance and deliveries are just a few of the main problems that various firms are encountering. Because of this, scrap metal recyclers and dealers around the world are being faced with a whole lot of uncertainty. 

The Importance of Scrap Metal Recycling

Scrap metal demand is expected to rise in future as more and more economies start opening up and building themselves back together again. For this reason, your unwanted scrap metal materials are more valuable than ever. Scrap metal recycling, just like all forms of recycling, is integral for the environment. And needless to say, proper waste management continues to be important, even throughout the course of the pandemic. 

If you’re got leftover scrap metals on hand, turning them over to a scrap metal recycler still remains as the best solution. In this way, not only will you be doing your part for the environment; you’ll also be able to receive cash for scrap as a result of doing so! 

Choose Allied Metal Recyclers for Your Scrap Metal Recycling

Despite the tough road ahead, we’re still continuing to chug along here at Allied Metal Recyclers. Our team are ensuring to follow the recommended guidelines proposed by various authorities, in regards to safety, hygiene and social distancing. As a result, we’re still able to assist many of our customers in getting the scrap metal removal and recycling services they need. Moreover, we’re continuing to offer the best price possible in exchange for their unwanted scrap, all thanks to the superior capabilities of our state-of-the-art analysis technology. 

So, got metal? For the best scrap metal price guaranteed, get in touch with Allied Metal Recyclers today for a FREE QUOTE!