Scrap Metal Industry Witnessing A Plunge
Scrap metal business for young entrepreneurs is proving to be worthy. This business of reclaiming and recycling metals is making fast millions for many. Investment may vary according to the reach of the business.This business of reuse- recycle has been taken very seriously by some countries. People have made fortunes out of this business.
In the US, this business has generated around half a million jobs and shooted the economic activity to new heights. Surveys were also conducted in the US to judge how flourishing this business is. The results showed that scrap metal business is a big market and burgeoning day by day. It is helping the economy to build by adding more employment and increasing the revenue generated.
Scrap metal is exported in large amounts, amounting to 26.7% of the country’s economic activity. This industry is as important as the dental or automotive industry with its operations spread across the entire state.It earns as much revenue as meat or poultry. This industry is responsible for generating 471,567 number of jobs directly and indirectly. Direct jobs include people who handle converting scrap metal into usable new metal. While indirect jobs come for those, who deal with machinery, service suppliers and equipment.
There is always a fluctuation seen in the price of the commodity. It is a market where the prices get defined by the market. If the market is incurring a loss, the price of metal also decreases. One can never wait for the right time to buy or sell his scrap metal. One is very unsure of how the market will behave. Sometimes the prices shoot up and sometimes it remains low for a long period.
The scrap metal gets melted and made into new paper products. However, in the current economy situation, the cost of importing scrap metal has elevated to new heights because of the costly dollar. As a result, the demand for scrap metal in countries like China and Turkey has diminished. This affected the US industry a lot. The backbone of the industry that is dealers and scrap gatherers are declining any growth in this sector.
Export Scrap Metal
Turkey was one of the big industry buying scrap metal in large quantities from the US. They have steel mills that use scrap metal. However, now they have found new avenues like Russia, Ukraine with weaker currencies.
In China also the scenario was similar. Ships loaded with scrap metal used to be sent to China when the industry was young. However, now everything has turned sluggish. There is also seen a hint of domestic scrap replacing the need for importing from the US. People in China are using more cars and electronic appliances and throwing them away in a fast manner leading to an in-house availability of scrap.
Another worry that is coming in the way of the scrap industry is that there is less steel present in cars manufactured nowadays. This gives better utilisation of the petrol.
In the US, the demand for papers and boxes has decreased. Moreover, therefore the price of cardboard has reduced by 27% as reported by Pulp and Paper Week. This business is not a glamorous one. It is struggling and provides money for those who work hard.
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