Scrap Metal Prices in 2016
Due to a surplus of steel in China, combined with the floundering Chinese economy, scrap metal prices might have been low, but thankfully, forecasts for the future are optimistic.
Experts quite rightly state that scrap metal prices and steel affect every aspect of our lives. Scrap metal from old buildings often helps to fund new developments and the sector alone is worth around £5.6 billion. With scrap metal contributing to growth and infrastructure, it’s a vital aspect of commercial and municipal development.
While the scrap metal industry has suffered a somewhat gloomy year, we’re pleased with experts’ predictions for 2016 and beyond. The World Steel Association and The International Lead and Zinc Study Group (ILZSG) have both put forward projections that offer a more positive forecast for scrap metal prices – which should soon enough see us all breathing a sigh of relief.
Steel Predicted to Grow
The World Steel Association (worldsteel) has predicted an increase in the global demand for steel – a rise of 0.7% in 2016, versus a 1.7% dip in 2015. The organisation feels that the Chinese market will stabilise, and also that growth in India will also show resilience to the current trend of slowing global economies. Furthermore, in developed countries, the recovery for the steel market also continues, albeit at a slightly slower pace.
In the UK, the scrap metal industry does have the Government’s support, as we continue to contribute to the growth of our economy as a whole. Welsh Secretary Stephen Crabb told the BBC last week, that the UK Government was “standing on the side” of communities and businesses within our industry.
He said, “We’ve taken action to address the high energy prices that steel companies have been paying, and we’re taking action at a European level to try and deal with the tidal wave of cheap Chinese imports that are flooding the market.”
Onwards and Upwards for Zinc
The International Lead and Zinc Study Group (ILZSG) has also predicted a positive upcoming year for scrap metal prices. The group says that global demand for refined zinc metal will increase to 14.4million tonnes – that’s growth of 3.3%. It’s believed that both the construction and automotive sector will experience an increase in the demand for zinc, and therefore growth of 1.9%. The figures may seem small, but any growth is warmly welcomed by all scrap metal processors, including ourselves.
Open and Ready to Serve
When it comes to scrap metal prices, there are many dynamics involved – this is a global commodity with cyclical prices. Despite a fairly tough year for the entire scrap metal industry, we’ve remained optimistic and ready to serve which is why we strive to always provide an effective, efficient recycling service.
With these hopeful predictions for global steel and scrap, we want to stress that our doors are open – and we will continue to provide the best possible price for your scrap metal. For more information about our scrap metal prices, contact one of the team today.