The Growth of Scrap Metal Selling
THE GROWTH OF SCRAP METAL SELLING
The growth of scrap metal selling had been fast and swift, yet there has been a slump in the metal recycling industry in the recent past. It has been on a decline since a decade ago but recycling always hoped the silver lining on the horizon would appear sooner than later but it has eluded them and there has not been any improvement to write home about.
The United States metal recycling industry is one of the largest in the world and it is being hit very badly and leading businesses are just keeping their head above water whilst the small and medium operations are badly hit and some have even wound up operations.
The last three decades saw a revitalized metal recycling industry and one which was operating like a well oiled machine with handsome profit margins for the small, medium and the larger players and a very vibrant competition was in place with everyone finding their own niche market and the going was good.
Today the ball game has changed with lower scrap metal prices and hence lower profit margins keeping the costs more or less the same which has impacted not only recyclers on the West of the Atlantic but also those on the East and others around the world.
Going back to the end of World War II, the metal recycling industry boomed and those who had not even touched a piece of scrap metal got into this lucrative market because of the high potential to make quick and good returns.
The colossal quantum of ordnance dropped on Europe was what kick started this industry and it took off well and the potential was limitless when the loads of bombs that were dropped and the quantity of scrap metal that was available was taken into consideration.
Over the last decade even when there was a slump in the US recycling industry there was a substantial demand from the recyclers around the world and this saw US scrap metal moving overseas and this did give a shot of adrenaline to the US scrap metal market though the recyclers were mildly hit.
This trend has stagnated with a “even stevens” situation arising and the whole world for scrap metal recycling seeing red which has brought the industry tumbling down with lower scrap metal prices and hence lower profit margins to push out the smaller players out of the equation.
The overall slump in the US economy has seen this alarming trend for the scrap metal industry too, and it is not sufficient for the automobile market in the US to sustain a global growth for scrap metal recycling as the world too should take the lead and bring a notable demand for the product which is not forthcoming hence the downturn here in the US and elsewhere.
The US market cannot piggy back the world scrap metal market and the world cannot piggy back the US hence it is a no win situation for all.