Wilson, NC., November 10, 2014 – Wilson Metal Recycling is dealing with major shifts in scrap metal pricing and is releasing comments on where scrap metal prices have been trending and where they may go in the near future.
The global economy has a large effect on the price of metal in the US. Due to a complex set of international economic trends, prices have dropped significantly in recent weeks. While the U.S. economy is growing too slowly to make most people and companies satisfied, it is doing better than many other parts of the world. Based on that, the U.S. currency, the American dollar, is doing better (is stronger and more valuable) than most other currencies in the world. The increased value of the dollar hurts the prices of scrap metal here in the U.S. because metal can be purchased from other countries for less money.
Since the U.S. dollar is stronger than the European currency (the Euro), it is better economically for U.S. steel companies to purchase scrap metal from Europe and ship it to North Carolina, than to pay current prices to scrap yards and Salvage yards here in the U.S. Based on this, we will see scrap steel prices decline yet again this month. It is clear that U.S. manufacturing is doing well and there is currently a high demand for scrap metal, but as long as it is cheaper to buy metal from overseas, the prices for American scrap metal will remain low. In the past, China had a high demand for American scrap metal, but China has now started purchasing from the European metal market and reduced the amount of scrap metal they are purchasing in general. The Chinese scrap slowdown and the increasingly profitable European metal prices have caused an influx of scrap metal around the US, which additionally hurts the prices of scrap metal recycling products (including all types of steel) here in North Carolina. Scrap Metal-steel is now at a 12 month low.
Copper has many of the same global dynamics as steel, but is worse. In April 2011, 3.5 years ago, copper was almost 50% higher in price than it is today. Copper is now near a multi-year low. Again a slowdown in China is part of the reason along with new housing starts in the U.S. are still about half their 2007 high. There has been a shift in recent years from copper to plastic plumbing, which is hurting copper demand and is part of the problem.
We have seen nothing other than an almost catastrophic drop here. Stainless steel both 304 and 316 alloys are down almost 20 percent in recent months. There is less and less demand for scrap stainless steel, which is driving down prices.
If there is good news, it is aluminum. While steel, copper and stainless steel are all down in price, aluminum has maintained a steady value in recent months. Part of the reason for Aluminum's recent stability is a new trend in the global market, which has increased demand for aluminum. Auto companies around the world are looking for ways to increase fuel miles per gallon. A key way to do that is to make vehicles lighter. Starting next month, Ford will be selling its new F-150 Pickup (the #1 selling vehicle in the U.S.), with a 100% aluminum exterior. Many of its structural parts will be aluminum as well. The jetliner industry is also doing very well and uses significant amounts of aluminum, which has helped keep prices steady.
Safety, great service, and fair prices are our main concerns at Wilson Metal Recycling and we will continue to do our best to offer the highest prices possible.
Wilson Metal Recycling is the largest metal recycling company in Wilson, NC- making it a major Wilson Recycling Center. Wilson Metal Recycling also has operations in Raleigh, NC as well as other affiliated scrap metal recycling companies in the North Carolina and Virginia. This southern-focused network of scrap metal recycling facilities strives to bring Retail, Industrial, and Demolition customers the best in scrap metal recycling services. Located at 404 Maury Street S, Wilson, NC, 27893, they provide a complete set of services of recycling for not only metal, but Electronics, Cardboard and common Plastics.