Although the scrap metal market took a major hit in the wake of the COVID-19 pandemic, it has been recovering well throughout 2021 on an upwards trajectory that’s set to continue for the next two decades. While precious metals are at a low point, we’re seeing the value of aluminium reach a 10-year high this month!
The increase in demand on aluminium is due to its fantastic versatility. Aluminium is the second-most used metal after iron. It’s strong, has a high melting point, and is lightweight – this makes it an ideal material for use in transportation, such as planes, trains, ships, and cars, and electronics such as smartphones, tablets and TVs. Increasingly, aluminium is a popular choice of metal as it’s a low-carbon material which makes it far better for the environment than alternatives.
A combination of factors has led to the rise in value of aluminium. This is in part due to the global shipping crisis, in part due to a coup in Guinea (the second largest producer of bauxite – the raw material that forms the basis of aluminium refining), and in part due to China reducing their production of aluminium to reduce pollution and save electricity.
It’s factors like this that keep the scrap metal market in a constant, often unpredictable flux, meaning that people looking to get the best value from their scrap often wait until the market changes in their favour. As with all other materials, value directly correlates to supply and demand so when the global demand is high and the supply is low (as it currently is for aluminium), the value goes up.
Since the pandemic, the global demand for almost everything has gone back up and this means the aluminium that’s needed for everything from smartphones to drinks cans has also increased. The demand is currently outweighing supply and this scarcity has even led to a shortage of Coke cans!
If you’ve got aluminium and you want to seize your chance to cash in and sell while the value is high, we have a quick and easy drive through service here at Singleton’s in Manchester. Remember that, as global production increases to match demand, the value of aluminium will decrease again – so it’s important to strike while the iron (or aluminium!) is hot! Drop by and pay us a visit; we’ll get your metal weighed and evaluated and you’ll be paid there and then!
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