Industry Insights for the Scrap Metal Industry

market revenue concept when looking for steel recycling industry trends

The scrap metal and scrap metal recycling industries are a very important part of U.S. revenue and economic wellbeing, generating billions of dollars every year and providing numerous jobs. Of course, like all industries, year-over-year changes and fluctuations in the market are common. Here are some industry insights for the scrap metal industry for 2018 that are important to know if you work in the scrap metal industry, or are a scrap metal buyer or seller–

Who Are We Talking About When We Say “Scrap Metal Industry?”

When we use the term “scrap metal industry,” we are talking about numerous different players. These key players include:

  • Steel and iron recyclers;
  • Aluminum scrap recyclers;
  • Lead scrap recyclers;
  • Copper scrap recyclers; and
  • Other nonferrous scrap recyclers.

In addition to recyclers, all those involved in the collection and processing of ferrous and nonferrous materials are counted, too.

Revenue Is Slightly Down

According to IBISWorld, over the past five years, the scrap metal industry has declined ever so slightly – 2.3 percent to be exact. As such, U.S.-based scrap metal revenue generated approximately $39 billion in 2018. In addition to the slight revenue decrease compared to previous years, the number of scrap metal businesses has also decreased by .9 percent, and the number of scrap metal employees has decreased by .6 percent.

What’s Expected for the Industry?

It can be difficult to make accurate predictions about the industry – a change can be preceded by a political move, bad weather, or numerous other unexpected circumstances. That being said, some forecasts for the future include:

  • The price of steel is expected to fall slightly, which could threaten the scrap recycling industry. When prices for steel are lower, there is less demand for scrap recycling.
  • However, the industry could also experience a boom in the future, at least in the United States. This is because China buys a lot of American recycled steel products, and as the GDP of China is expected to increase, so are the country’s building and development needs, increasing the demand for steel.

Contact Scrap Metal Services, LLC Today to Learn More

If you have questions about scrap trends or scrap recycling or want to get fair market value when selling your scrap, call our team at Scrap Metal Services, LLC today. We are a leader in the scrap recycling industry and have years of experience behind us. Reach us at 708-730-1400 today or send us a message to learn more.

How Will Tariffs Affect Metal Prices?

tariff graphic concept for how changes in tariff will affect price of metal, contact a reputable scrap metal recycler

How Will Tariffs Affect Metal Prices?

Tariffs, including what they are and how they work, can be complicated to understand. What’s more, if you are employed or run a business in an industry that relies heavily on metal, you may be wondering how tariffs will affect metal prices. Here’s a brief overview of what you need to know-

What Are Tariffs?

Tariffs refer to a type of tax that is paid on an import or export to the United States. The tariffs imposed under President Trump specifically impose a tax on imports to the United States, which is assessed at the border (of course, in response, other countries enacted a tariff on imports to their own countries from the United States).
The basic idea behind a tariff is this: because it increases the cost of the good to be imported, the cost should act as a deterrent, urging Americans to purchase locally-manufactured items instead of imported ones. While this is a nice idea, in theory, the problem is that the vast majority of goods in the United States are made overseas, or at the very least, contain parts that are manufactured overseas.

What Do Tariffs Mean for Metal Prices?

The tariffs that were enacted by the Trump administration a few months ago have meant that metal prices have increased. To be sure, in January, the cost of Ingot Premium aluminum was 10 cents a pound, and by mid-March (after Trump had announced the 10 percent tariff on aluminum), the price had jumped to 20 cents a pound. Steel underwent a similar price hike – in January, the cost of hot-rolled coil was $661 per short ton, and in March, the price had increased to $836.

When Will Tariffs End?

If you’re in an industry that relies on the import of metals, you may be curious about when the tariffs will end. The answer is unclear, but as of September 2018, Trump has said that he’s considered more tariffs, not fewer. As a leader who strongly believes that imports hurt America, he’s been vehement in his conviction that tariffs will make America a stronger country and global leader.

Recycling Scrap Metal Can Help

While no one can avoid tariffs, and your business may be forced to import and pay high taxes on your imports as such, recycling scrap metal can help. The recycling of ferrous and non-ferrous materials like steel and aluminum reduces the need for additional imports from other countries, is good for the environment, and can be economically beneficial for companies.

We Can Help

To learn more about how we can manage your scrap metal processing and recycling needs, please call us today at 708-730-1400 or send our team a message today. We are a leader in the scrap recycling industry.

What to Look for in a Trusted Scrap Recycling Partner

trusted steel mill scrap metal recycling company in Blue Island

What to Look for in a Trusted Scrap Recycling Partner

Regardless of the industry in which you work, if your business produces scrap, or if you are an individual who is in possession old farm equipment, or other types of scrap metal, scrap recycling is a must. To be sure, scrap recycling not only helps your business to maximize its profits but also clears up space and puts you or your business at the forefront of responsible recycling efforts.

But before you hire just any company to buy and process your scrap, you should know what to look for in a trusted scrap recycling partner. Here are some key characteristics of a trusted scrap metal services company:

Experience

Our team of professionals knows that when it comes to scrap recycling, experience makes a huge difference. This is because scrap management and processing is a large undertaking and one that can take years to effectively refine. At Scrap Metal Services, LLC, we have been providing scrap services for clients for over a decade, and have quickly grown to a worldwide leader in the scrap recycling industry.

Comprehensive Services

We provide myriad services for our industrial partners. These services include management of all logistics, transportation services, container recycling services, railcar dismantling, ship decommissioning, processing of ferrous and nonferrous materials, demolition services, and more. We are your one-stop-shop for all of your scrap metal recycling needs; you’ll never need to work with outside third parties.

Commitment to Worker Safety

Worker safety is at the forefront of our approach to scrap management and processing. We maintain written health and safety policies, always do business within OSHA compliance and federal regulations, and maintain accident reports and a thorough investigation process.

Commitment to the Earth

We know that improper scrap metal recycling and dismantling services can be hazardous for the earth and that our workers and our planet face risks ranging from asbestos exposure, radioactive material exposure, pollution exposure, and more. We believe that recycling is one step in the goal to be more sustainable. We recycle in the most planet-friendly way possible, always adhering to EPA guidelines and best practices.

Putting Clients First

Finally, you want to work with a company that puts you first. We listen to our clients, pay top dollar for scrap, and handle all logistics. Working with us is easy, and you’ll always be met with honesty and transparency.

Start Recycling Scrap Today

The right company will meet all of the above criteria. At Scrap Metal Services, LLC, we are ready to meet with you and learn more about your scrap recycling needs. Call us today at 708-730-1400 or send us a message using the form found on our website.