It’s a tough time for anyone in the scrap metal business. Not so long ago it was a lucrative industry, and many companies have made impressive returns. But is all that about to change? According to this report at MPR News, it might be time for worrying.
According to the article, scrap metal prices have dropped in the past year – and the industry is struggling to keep itself afloat. Take copper as an example. It used to be $3 a pound, and because of its proliferation, it was an attractive commodity for anyone in the scrap business. Now, however, the price is set at $2. Imagine a third of the value wiped off gold, or the tech industry and you will have a good idea of what is happening.
So, if you are in the Commercial Scrap Metal Recycling Services, it might be time to start battening down the hatches. Your profits on metal are shrinking, so you should look at other ways to cut your costs. Here are some ideas for you.
Use a truck scale
When you are in the scrap metal business, time and weight is money. The more you can fit in the vehicle, the heavier each trip or truck, and the more money it will make you. So, maximize the cost of each trip by using truck scales and work out exactly how much you have gathered. Head over here for some more info – www.centralcarolinascale.com. The more accurate your weighing is, the less money it will cost you overall.
Lock things down
The authorities have been pretty hot on metal theft in recent years. They have, in general, been targeting scrap metal businesses more than the private variety. It’s no surprise – there is a lot of money to be made. However, it’s because of this, that as a scrap metal trader, you need to take security seriously. Avoid leaving your truck and trailer out overnight, and lock away your tools and finds as securely as possible. It only takes a weak lock to wipe out a week ‘s work.
Look to emerging markets
Part of the scrap metal price drop is down to China. A lot of metal used to be shipped east, as the Chinese railroads and industry demanded as much metal as possible. Now, though, they just aren’t building enough to warrant the supply. So all of that scrap metal that would have been shipped out is hanging around, and the price is plummeting. It’s not the time to panic, however. Try looking into new emerging markets that are pumping money into housing and travel links. India, for example, is having a huge revamp, and it is the same in Latin America where if you want to invest, you might as well do after reading this How to Weld Metal for Beginners Guide 2021.
While the scrap metal market is taking a bit of a pummeling, there are ways to save costs. And doing so might make the difference between you and the company down the road. The boom is over, certainly for the moment. And, there will be plenty of casualties. By making sure you cut your costs and look into new markets, you will stand a better chance of not drowning with the rest.