Across the United States the price of crushed auto bodies fell an average of more than 2%.
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After six consecutive months of growth in the scrap metal market the June update declines slightly. Across the United States the price of crushed auto bodies fell an average of more than 2%. This leads to a national average in the scrap metal market to be about $184 per gross ton. In a year over year comparison the June update is about 5% ahead of the same time period last year. This equates to about a $9 increase. In 2016, prices in June, July and August all increased before falling over 30% in the following months. Looking ahead we will have to see if this year follows a similar path to 2016.
For the most part the decreases around the country were pretty minimal. However, the northeast (Zone 4) decreased by about 3% and southeast (Zone 5) decreased by about 7%.
In recent steel market news, a Bloomberg article reported that China, who produces half the worlds steel, yielded a record quantity that sets the scene for a decline in prices. Global ferrous scrap availability is expected to increase as well. In Recycling International it is mentioned that scrap availability will surge in the developing world. By 2030, we could see an increase to 1 billion tons of ferrous scrap globally from 720 million tons in 2016. The World Steel Association’s head of raw materials stated that steel industry can “increase its use of ferrous scrap considerably in the medium and long term.”