3 Reasons Why Scrap Prices Are Going Down
Posted: December 7, 2015
Lately the we’ve seen the scrap prices tumble to 12-year lows for some materials like steel. While we never like to see this occur, it has to be expected when you are in the scrap industry. Similar to commodities like oil and agriculture, supply and demand play large parts in determine the cost of things. Since our existence started in New Jersey in 1977, Rockaway Recycling has always used the phrase “Fair Weight. Fair Price.” While it may seem a bit cliché, it really holds true during difficult market times like these.
We Are Keeping Our Eyes On Scrap Prices
When prices are dropping like the are the last few months, our philosophy holds true, because not only are our customers like plumbers and electricians feeling the effects, but we are too. We want to ensure that the prices we are paying at our scales for higher prices items like copper, aluminum, cable, and brass are current and updated. With the markets being as fragile as they are right we are making sure to keep a keen eye on the numbers and make any necessary changes to our scales prices.
Rockaway Recycling has always prided ourselves on updating our prices daily on our website so that our customers have a clear idea of what their scrap metal worth when they bring it to our scrap yard. So when prices are fluctuating or dropping frequently, we ensure to keep the scrap prices updated even more on our website. So occasionally, depending on the conditions of the market, we could be updating our prices a few times a day. The best option is to check the timestamp on the top of our scrap price list to see the last updated time and date.
So Why Are Scrap Prices Going Down?
So now that you know you can always check Rockaway Recycling’s website for current scrap prices, we have to discuss what of the most common topics that people in the scrap industry are discuss over the last few months heading into 2016, “Why are scrap prices going down?”. We also get a common question asking when the scrap prices will be rising again, and while we wish we had the skill of a fortune teller we can only tell you some of things we do know about why they scrap prices seem to be falling in 2015.
If you look at the price of oil since 2014 we have seen a dramatic decline in the prices and those declines have trickled over into the metals market. The prices have dropped to multi year lows and because of that we are in a position to see lower metal prices for the foreseeable future. We have no idea on when it will go up…and if we did we tell people that we would be retired already (haha)!
Other reasons that prices have fallen is a massive uncertainty of growth overseas. There is not a large belief that the markets will recover and other economies will continue to grow at high rates so we have to watch out and hope that we will see some positive signs of growth overseas in countries such as China and India.
Lack Of Industrial Manufacturing In The US
We also have seen a very low industrial manufacturing increase of any type in the US…because of that you will see less of demand locally for metals that once had such a large value for resale. So the domestic scrap prices are affected by what is going on our own soil.
So when you are looking to find out the reason why scrap prices are dropping or at 12-year lows, like they are now, there are generally multiple factors that play into determining the current scrap prices. You can always check out current scrap prices on our website. We are updating them daily or whenever they are adjusted during the day. You can also sign up for our email newsletter to keep you updated on the market conditions monthly and if there are any price alerts.
Have Questions About Why Scrap Prices Are Going Down? Ask!
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