What are the dynamics of scrap metal prices?
May 26, 2024
Scrap metal operates like any other commodity, with its price closely tied to the basic economic principles of supply and demand. When the demand for metals is high, prices generally increase. Conversely, when supply surpasses demand, prices tend to decrease.
The global economy greatly influences scrap metal prices. During economic recessions, industrial production and construction activity usually decline, reducing the demand for scrap metal and resulting in lower prices.
(Source: Shanghai Metals Market)
