Scrap Metal Industry Booms as Prices Rise to an All-Time High

MELBOURNE, Australia, May 20, 2021 (Newswire.com) -  Offering car removal Melbourne-wide and beyond, scrap metal company Total Auto Recyclers are reporting skyrocketing prices, and industry experts say that the prices aren't likely to come down in the foreseeable future.

Last year, the going rate of scrap metal was $425 per tonne, a price well below the 10-year average. Today, scrap metal can be sold for up to $554 per tonne -- and experts aren't expecting a price drop anytime soon.

Over the past year, the auto recycling industry has faced the same challenge as many other industries. The coronavirus pandemic forced ports to close, slowing down international exports, and producers of nonessential goods like scrap metal immediately felt the hit.

The pandemic also halted the production of materials and processes necessary to generate scrap material, such as semiconductors and automotive supply chains. Harsh winter weather in the United States also meant a halt in manufacturing in the metals industry. Companies across the globe are scrambling to make up for lost time and keep up with the increasing demand for scrap metal.

The past few months have seen increased vaccine rollouts around the world, economic stimulus schemes, and an increase in global trade. As quickly as the scrap metal industry felt the blow of the pandemic, they're now experiencing a significant bounce back.

The now tight supply of scrap metals has boosted the global demand for them in a big way. Products from electronics to appliances will continue to grow in demand as coronavirus restrictions ease and citizens look to spend their stimulus cheques.

New, more direct trade routes are opening up to ship scrap metals faster and at a lower cost. Whereas shipping from Australia to China has previously taken up to 30 days, these new trade routes are expected to cut that time down to just 13 days.

While buyers may be in a tough spot with this price increase, it comes as exciting news for sellers. Now is the time to get rid of scrap metal or old automobiles for parts. Taking advantage of schemes such as Cash for Cars Melbourne or utilising Total Auto Recycling's car removal Melbourne-wide service are easy ways to capitalise on this industry boom.

Source: Total Auto Recycler