How is Coronavirus affecting scrap metal prices?

Waking up to the recent news that Greater Manchester will be back in a more severe lockdown wasn’t fun – but we’re confident that we can continue to provide a safe service for anyone who still wants to drop off and sell their scrap.

If you’d like to learn more about what we’re doing to keep the yard safe, you can check our blog on social distancing and safety.

But another concern through these times is the impact extended lockdowns and economic turmoil continues to have on scrap metal prices worldwide.

As a global industry, scrap metal prices rely on supply and demand trends around the world. So far, prices are remaining relatively stable – though obviously lower than the pre-pandemic prices. 

Measures such as South Africa banning scrap metal exports to protect the local industry fortunately haven’t had a major impact as demand has fallen in line with supply, keeping things in check, by and large.

But the worry will be further down the line. How quickly economies around the world recover will determine how demand begins to rise. 

Some analysts are concerned that unemployment uncertainty caused by coronavirus will mean willingness to buy “big-ticket” items like cars and washing machines, which drive demand for metals, will fail to return.

This means the “supercharged” recovery that could be possible if industries bounce back is still up in the air.

Indeed, in the UK, more than half a million people are out of work as a result of the pandemic, with the furlough scheme soon to be wound down – in turn creating more uncertainty.

It’s also not just supply and demand that’s causing fluctuations to prices. The coronavirus lockdowns have hit the freight and shipping industries hard, so higher freight rates means that there’s less profit to be made from scrap unless the prices come down.

So, what does this mean for scrap metal prices?

There’s no two ways about it – they are down at the moment. This means it’s more important than ever to shop around and find the scrap metal yard offering the best price for scrap metal – and to hold onto it until prices rise if you can.

At Singleton’s, we always try and offer the best-possible price that we can – so get in touch today to discuss prices.

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