Recycling center operators project slight increases in scrap metal prices over the coming year.
Ferrous and non-ferrous prices should improve slightly within the next three, six and 12 months, according to respondents to the ScrapyardPRO Scrap Metal Market Outlook.
Respondents continue to worry about the economy and material prices though, and recent reports indicate that their concerns may be justified.
China’s economy, which may be the predominant influencer of scrap prices in today’s global marketplace, grew at its slowest pace (6.9 percent) in 25 years in 2015. “The economy faces relatively big downward pressures,” a Chinese government official said in announcing plans to lay off 1.8 million coal and steel workers, including 500,000 of the latter, at state-owned-enterprises, Reuters reported.
China’s crude steel production decreased by 7.8 percent in January, compared to the same period a year ago, the World Steel Association (worldsteel) reported. Globally, crude steel production declined 7.1 percent in January.
However, reduced output and capacity could help boost scrap metal prices by more closely aligning supply with demand.