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Scrap metal prices – where are they going?

Scrap metal prices, where are they going? Matthew High
Matthew High

Matthew High, Founder of Scrapsaway.co.uk provides ATF Professional with his views on decreasing scrap metal prices and how China’s import ban has been a major factor in this shift throughout 2019.

I’m sure your readers and members are aware that the ferrous metal market is under a massive amount of pressure and has been in steady free fall across September. Prices have hit 3-year lows and are not looking like they are going to recover anytime soon. At the start of 2019, there was great optimism for the markets as discussions between the US and China were going smoothly. Combined with the financial markets being in the right place and the demand for steel was high it saw prices go through a significant climb in mid-February.

That was over seven months ago now, and there have not been the slightest signs of any repeated movement since then. Truthfully, there has been a massive move in the opposite direction. A move which has seen 29% wiped off the value of steel since February.

Why is there all of a sudden such a low demand for steel? It may have something to do with the fact that China has for the first this century not imported any steel into its country. The Chinese government banned any imports of solid waste materials from assisting with reducing their environmental impact targets.

With China (the biggest user of scrap metal) no longer importing scrap UK scrap yards are holding onto much more material than they would usually like to. Those with space are buying large quantities of scrap iron and scrap cars, hopefully waiting for the tides to turn. 

Industry sources believe that over the next ten years this is likely to worsen still. China is thought to be soon turning to be world’s largest exporter of scrap metal flooding the market with their vast stockpiles and driving prices of all grades down. 

What does it mean for other metals when the steel prices are this low? Demand for other metals increases, especially precious metals. There have been soaring reports of catalytic converters being stolen throughout London and the UK. This is thanks to the rising precious metal markets and thieves having to turn to other metals rather than the rock bottom steel market.

We will be keeping our ear to the ground waiting and wishing for some good news over the coming weeks and months. With the final quarter of 2019 approaching quickly, we strongly suggest that everyone tightens their belts as we approach what is historically the toughest period of the year. If we hear any hints of positive news, we will be sure to put it out across our social media sites, so please be sure to follow us across Facebook, LinkedIn, Twitter and Instagram.

To contact Matthew send him an email at recycle@scrapsaway.co.uk or call him on 07849 441587. Alternatively visit the scrapsaway website here: www.scrapsaway.co.uk

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Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

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e2e Total Loss Vehicle Management [e2e] is the UK’s only salvage and automotive recycling network with nationwide, environmentally compliant sites delivering performance resilience and service reliability to the insurance and fleet markets.  The network’s online salvage auction www.salvagemarket.co.uk drives strong salvage resale values and faster sales.  e2e’s salvage clients have access to the network’s stocks of over 5 million quality graded, warranty assured reclaimed parts. 

The power of the network model means e2e has the ability to influence industry standards and is committed to continually raising the bar whilst redefining the role and perceived value of the salvage operator.  Network members adhere to robust service level agreements, against which they are audited, in order to ensure performance consistency and a market leading customer experience.  

The salvage and recycling operating environment is evolving rapidly, and e2e is anticipating, listening and responding to changing market needs.  Regulatory compliance, ESG, reclaimed parts, customer experience, EVs, new vehicle technologies, data and reputation risk are just some of many considerations linked to the procurement of salvage services.  e2e will drive further added value to clients and members through the adoption and application of emerging technologies, continuing to differentiate its proposition and position salvage services as a professional partnership. 

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