The nonferrous scrap industry was preparing for a rough April, as sales steadily dropped due to the COVID-19 pandemic. Fortunately, many scrap metal and tungsten carbide recycling companies have been able to remain open as they are deemed as essential services. To ensure efficient and safe operations, metal trading companies have adopted safety guidelines and are practicing social distancing and frequent sanitization in work environments.

Some metal traders stated that although it has been hard, the industry is pulling through.

The scrap metal and tungsten carbide recycling industry is heavily influenced by aerospace, automotive and construction, all industries that have been impacted by the pandemic. Many automakers have had to temporarily shut down operations, directly effecting the metal industry. Aluminum scrap mills have also been pushing off deliveries, as well as trying to balance deliveries with sales and shipments. Even some aluminum scrap consumers are making an effort to not carry too much inventory to avoid getting ahead of themselves.

With all the new changes and contract reviews coming up in September, many manufacturers and metal companies are trying to figure out what the future holds for them.

What has effected this industry the most is the closure of other scrap dealers’ retail operations. It’s reported that the intake of scrap metal was down 30 to 40 percent, which is a drastic change to what it was compared to six months ago.

However, many tungsten carbide recycling companies are still managing to accept, receive and ship out metal. Even some retail stores were able to open in early May and have seen a steady rise in retail traffic and are almost back to normal levels prior to the enforced lockdowns. Another positive mention is that red metals such as copper, continue to be trading and have been holding prices at a certain level. Even oversea markets that were completely shut down are slowly seeing a comeback as well.

Many in the metal industry have faced challenges dealing with the outbreak in the past couple of months, but operations in these industries are slowly and steadily making a comeback.

External Resource: https://www.recyclingtoday.com/article/nonferrous-scrap-sector-covid-19-outlook/