March 2021 overview of the sustained and specific demand for end of life vehicles and their parts and materials
The key driver for some of the rapid changes we’ve seein in demand is likely the ongoing conversation about US Trade With China. While the ‘war’ continues, the global demand is outperforming the narrative.
The new Biden administration so far has not changed tariff structures with China. China has requested renewed dialogue pertaining to removing tariffs and sanctions, but since then no meetings on the subject between US and China have taken place. In response to the US-China trade war, and also supply bottlenecks resulting from when Chinese factories were in lockdown due to the Corona virus pandemic, President Biden has signed an executive order to examine supply chains in industries strongly affected by the pandemic, for purposes of better understanding and ultimating removing risk to these industries by yet to be determined changes to supply structure. So far though, the status quo of the ‘trade war’ remains, but our key indicators are on the move.
Crushed Auto Bodies leaps up 24% from January, this was almost 34% more higher than Feb 2020 before the worldwide pandemic hit global markets. This increase follows a 9.72% increase the previous month! Broken down regionally, this increase is definitely not evenly distributed across zones. Zone 5 saw a 42.29 percent increase
This rapid increase in crushed autobody prices is likely related to China lifting its ban on the import of scrap metals.
Lately our star performer, Rhodium experienced another marked increase up 13.82 percent vs last month. This represents a 158% increase over Feb 2020
Platinum Demand for Feb was up 11% vs last month, and 25% higher than Feb 2020.
Again, the most interesting aspect of this month’s Markets and Metals is that the annual comparisons represent that last full month before the Global Pandemic reset world economies (at least temporarily). We saw a ton of movement last month and are curious to see where next moth takes us.
NOTE: All figures are believed to be reliable and represent approximate pricing based on information obtained prior to publication. Data is sourced from American Recycler, London Metal Exchange, iScrap App, and Scrap Monster. Advanced Remarketing Services is not responsible for the accuracy or completeness of the information provided, or for the use or application of information herein.