Covid-19 has affected many industries worldwide, and including these are the scrap metal recycling industries. Most metals recycled for the scrap market have lowered their prices due to changing trade patterns. Most countries have banned export markets, and this has led to reduced prices on recycled metals. For instance, due to low economic income, the currency values have gone down tremendously leading to an effect on them.
There is a focus on the aluminium, copper, iron and brass metals which have always been key raw materials. These industries continue to suffer amid the COVID-19 crisis even as measures are being taken to control the spread. With reduced currency value and restricted movements, the prices and market of recycled metals continue to drop daily, respectively.
Some of these metals are used in the making of essential household items and others for electronic devices. All these activities have been disrupted by the COVID-19 crisis which broke out last year in Wuhan, China
Copper is a red metal which has been leading in price in the line of base metals has its prices affected immensely. This is because there are unstable supplies in the scrap market due to the global pandemic. This is expected to continue for a while since economies have reduced their GDP to fight COVID-19.
Main world economies such as China, Asia and Europe are greatly affected, and hence the copper metal price has reduced. However, copper and brass have been confirmed to have anti-microbial competencies which are a positive thing. This means that with the governments’ authorization, these metals can be used in health care centers and agriculture industry during these difficult economic times.
In the case of aluminium, the effect on prices is just as immense as the rest of the metals. First of all, there has been commotion and disruption in the industry operations. With all events planned not able to take place and activities, the prices in the market are also low.
The demand for aluminium materials such as the medical devices (ventilators) currently is on very high demand, but the production is low due to restrictions. This is the one area where the demand is slowing due to slow production procedures. The prices have significantly dropped in the automotive and construction industry since all the focus is on medical equipment currently.
Globally, all the industries are facing a change in one area or the other, which makes it difficult to carry out day to day operations successfully. Manufacturing industries have come to a state of closure for most scrap metal recycling metals due to COVID-19.
The prices continue to decline since the economies are more concerned with the well being of their countries. All economies are now using just the very last cents to try control measures for the pandemic, and therefore metal industries are affected.
How long will this decline in prices continue?