It’s been nearly a month since Article 50 was triggered by the Prime Minister, and Brexit proceedings are now firmly underway. But what does it all mean for the scrap metal industry?
Scrap metal is a great way to earn some extra cash if you’re clearing out your home, your business or if you’re a tradesperson – but you want to make sure that you’re getting the best value for it.
Before the EU referendum took place, scrap metal had crept up in price as of March 2016, after a period of continuous lows. Despite this, scrap metal merchants were told, as reported in The Telegraph, to “batten down the hatches in anticipation of a prolonged bout of suppressed prices.”
So, what’s changed? Flash forward to April 2017 and UK monthly scrap prices, which are measured in dollars, have fallen by $6-19 per tonne due to export market weakness. It should be made clear that there were dips in the in value of scrap metal before Brexit, but the latest announcements are still making the market sound uncertain.
Despite proceedings for Britain to leave the EU beginning, it still remains a member until the exit process is completed. The whole thing is supposed to take two years, and could take even longer according to some reports. This means that, in the short term, scrap metal prices will vary, much like other industries where there will be rises as well as falls.
What is for certain though is that Brexit has affected the value of the pound, with the value decreasing from every £1 equalling $1.42 before the referendum down to around $1.20ish per pound.
This means for businesses who trade in metal industries in the UK abroad, rates have been affected – and for people who trade in scrap metal on the occasion, the value of scrap metal when compared to the cost of living has gone down.
Although all the uncertainty can be nerve-racking, there are positives to the scrap metal industry. Many believe Britain could be stronger as a result of leaving the EU, which could strengthen its position to begin trading with other countries – and this could have a positive impact on the metal industry.
There will always be a demand for scrap metal, and with the opportunities to trade across different countries it’s encouraging to see what will happen to the market post-Brexit. In the meantime, when looking to get the best value for your scrap metal you know who to contact: Singleton’s Scrap Metal.
If you have any questions about scrapping your metal, get in touch with us today and we’ll be happy to help. Alternatively, contact us on 0161 220 8058.Back to all blog posts