The pandemic has challenged businesses of all kinds in so many ways. And while the scrap industry is not totally spared from its devastating crisis, it is still growing at a steady rate. For one, the scrap metal prices this year in Australia are skyrocketing after a year of hardship. Industry experts say that they aren’t likely to come down any time soon. This is happening not only in the country but all over the world!
The year 2020 was unlucky for most industries. The same is true for auto recycling, which also faced many setbacks. With ports closed, the international exports of scrap metal have slowed down.
According to the experts, the global scrap metal recycling market will grow by 181.56 million in 2020 to 2024, which is lower as compared to the 2019 forecast because of the COVID-19 impact which was felt in the first half of 2020.
And then 2021 rolled in, and after a year of hardship, the industry started to recover. As expected, there is steady growth. With the projection of the scrap metal recycling market, experts say that it will grow at a CAGR of almost 4%!
How Is The Auto Recycling Industry Recovering?
The scrap metal prices are actually affected by the changes in prices of raw materials. These days because of worldwide lockdowns, the prices of ferrous and non-ferrous raw materials have increased exponentially. This pushed manufacturers to turn to scrap metal recyclers. This is one of the reasons behind the growth of the industry.
Aside from availability and affordability of scrap metal, the rising concerns about the impact of mining on the environment have encouraged manufacturers to make a great shift.
With companies all over the world slowly returning to their old ways and now scrambling to make up for the lost time, the demand for scrap metals is sure to rise. And with the tight supply of these recycled materials, scrap metal prices are also going to get more expensive.
Buyers are definitely in a tough spot because of the increasing scrap metal prices. However, for sellers, this is exciting news. The best time to sell scrap metal is now!
If you are looking for a scrap company in your area that will give you the best scrap metal price offer, consider Metal Force Recycling! We are an experienced company that has been in this line of business for many years. We buy all kinds of ferrous and non-ferrous scrap metal. We promise to pay top cash for your scrap. We have a fully-equipped recycling facility. So, you are sure that your scrap is going to be processed properly. If you have any questions about our services, please call us on 0403 191 732!