Those of you who scrap steel on a regular basis are probably wondering when the alarmingly low steel prices will reach the end of that cycle.
Although we wish we had better news, the reality is that it doesn’t appear we will see a significant turnaround for a little while yet.
There is really a lot at play here and the stakes are quite large.
Over the past number of months, giant shredders have been idled at a few scrap locations and overcapacity at the product end is also causing concern.
Utilization rates at steel mills have dropped and some mills have even been idled. It hasn’t helped that oil prices have dropped quite a bit since the steel industry has a significant exposure to the energy sector.
With no boom or major economic resurgence currently on the horizon, our best guess is that if we are going to see some real improvement this year it will not be until the last quarter. But as you can see from the graphic below, there seems to be a bit of a leveling out over the past few months. Cause for optimism? Let’s hope so.
Still on the subject of scrap metal, for those of you who share an interest in the defense/ military industry, there are always some interesting articles about equipment that is being scrapped.
Recently, we came across some articles concerning 16 cargo planes that were purchased for the Afghan Air Force. The planes were purchased in 2008 with a price tag of $486 million. They were scrapped in 2014 due to some significant problems which kept them grounded. The sale of those aircraft for scrap was valued at about $0.06 cents per pound for a grand total of $32,000.00. Wow!
For some interesting reading on this, here are two links to get you started.
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Peel Scrap Metal Recycling is a family owned and operated dealer & processor
of a wide range of scrap metals, insulated wire and end-of-life electronics.
With warehouses in Mississauga and Oakville we serve the public, the trades
and small to mid-sized manufacturing companies in and around the GTA.
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2301 Anson Drive,
(North of Derry Rd off Torbram)
1150 South Service Rd W.,
(Between 3rd Line & 4th Line)