It’s fair to say that most of us are feeling the pinch financially at the moment as inflation continues to head skyward. But, although the price of everyday goods is increasing, the price of scrap metal appears to be bucking the trend and heading on a downward spiral instead.

As Kent’s and south London’s leading scrap metal merchant, we get regular calls asking us what our current price per tonne for ferrous scrap metal is – It’s a competitive market so we’re obviously keen to pay the best price we can. We often have to tell our regular clients the bad news that the price has stayed the same or is going down. So, why is the price of some metal actually lower than it was at this point a year ago? Well, according to Construction Demolition & Recycling magazine, one of the primary causes is a slump in the demand for steel. And of course, less demand equals lower prices.

Crunching the numbers

In the US, the American Iron and Steel Institute (AISI), said that at the start of August 2022, steel production was down 0.2% on the previous week. Now, this might not sound like much but more importantly, there’s been a 7.8% decrease when compared to the same week in 2021. Operating capacity numbers show a similar trend, with steel mills now operating at 78% capacity compared to 84% capacity a year ago. Again, it’s the same with output; 54.47 million tonnes (present) compared to 56.22 million tons a year ago.

Global trend

As you’d expect, this trend in the States has been mirrored around the globe and the UK isn’t immune from it either. With the only exception being India, global figures paint a similar picture. Worryingly, 9 out of 10 of the largest steel-producing nations made less steel in the first 6 months of 2022 compared to the same period in 2021.

How it affects our scrap car prices

The price we pay for a scrap vehicle is directly linked to the current price of the various metals it contains. Fortunately, we’re still able to pay more than virtually any other scrap car company around as we depollute, recycle and crush the vehicles directly at our yard. It’s because of this (including selling spare car parts) that we’re able to keep our prices higher – and we’re still paying an additional £40 if the car has alloy wheels.

Price per tonne for scrap metal

Unfortunately, the basic price we’re able to pay per tonne for general scrap metal is a bit more sensitive to global price fluctuations. We therefore have less flexibility regarding the price we can pay for it. Nevertheless, we’re still paying some of the best prices around for both ferrous and non-ferrous metals so why no give us a quick call to find out our current rates?

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