After a dismal end to 2015, ferrous scrap metal prices seem to be rebounding. The latest surge in prices is attributed to higher demand in parts of Asia and North American markets. This is reportedly due to restricted supply and US steelmaking utilization. Canadian mills in particular have been competitively pricing scrap amid concerns of losing supply to the United States because of the low Canadian dollar.
Copper and Aluminum also saw sizeable gains due to restricted supply.
So, is this a short term adjustment or a sign of further scrap metal price increases to come?
According to the World Steel Association, crude steel production in January 2016 was down 7.1% compared to January 2015. The biggest deceases in January volume were seen in China (-7.1%), Japan (-2.8%), the U.S. (-8.8%), India (-1.2%), South Korea (-4.5%), Russia (-10.6%) and Brazil (-17.9%).
The only major producers to see an increase in January production was Turkey (0.8%) and Ukraine (3.6%).
Worldwide steel production has seen a modest increase of 1.1% in January 2016 compared to December 2015.
Although the recent scrap steel market has seen some signs of recovery, it should not be taken as a clear sign of good times ahead just yet. This uptick in prices should none the less take some much needed pressure off local scrap dealers and suppliers.
CAC Recycling’s pricing reflects the market and has updated March scrap metal rebate prices. For the latest scrap metal prices, call CAC Recycling’s Edmonton office at (780) 416-8007.