In a year filled with ups and downs in the Scrap Metal market, we are seeing a gloomy forecast for the remainder of 2019. The southern Ontario market has continued to fslip over the last several months and industry insiders are predicting more of the same for the duration of the calendar year.
Why is the market doing so poorly you ask?
Here a few contributing factors:
- Upcoming Mill Shutdowns
- As the year winds down many mills make time for repairs/upgrades which yields less production
- Scrap Metal Surplus
- Mills have enough scrap to handle demand in the current market thus limiting their need to increase spending
- Overseas exporting Is Almost Non-Existent
- With tariff concerns and an over-supply scrap movement has been minimal at best.
- Finished Steel Market Has Slowed
- Demand has dwindled down
- We’re Getting Closer to Winter
- This will have an impact on demand/price
- Year-End Holidays
- Much like many other industries with mill and buyer shut downs the price will not be increasing for a while
It looks like it could be a rocky three months to continue the slide in pricing. Hopefully the market can right the ship in 2020.