If you’re in the business of buying and selling scrap metal, then you already know that as we move into 2021, flexibility will be key. While you may want to lock yourself into metal prices for the next 12 months, if 2020 has taught us anything, it’s that it’s a very unsteady, unpredictable time. With that in mind, here’s an overview of what you may be able to expect from scrap metal prices in 2021–
While prices may remain a bit volatile through 2021, most experts are forecasting that demand for steel will remain high–especially during the first half of the year–while supply will remain constrained. This combo of high demand and low supply will continue pushing steel prices up. The uptick in demand will likely trigger blast furnace restarts and greater production levels; however, at least through the first quarter of 2021, more production isn’t likely to undermine pricing momentum.
What may affect metal pricing, though, is overall economic growth and pent-up consumer demand that will be thrown into the travel industry. As the vaccine is rolled out and the possibility of getting on a plane for a vacation becomes more probable, consumers will start spending more in this sector, shifting away from consumer and manufactured goods. However, while consumer demand for manufactured goods is likely to slow in the second half of 2021, inventories in the supply chain will still need to be replenished, which should keep metal prices steady. What’s more, consumer spending in these categories will support overall economic growth, something that will ultimately be positive for the metal manufacturing and metal recycling sectors.
We know that trying to predict and plan for metal prices in 2021 feels like a guessing game and, depending on your industry, you may have a lot on the line. For example, businesses in the construction industry are having to make tough decisions about project planning and metal buying, as cash flow is on the line.
At Belson Steel Center Scrap Inc., we want to help to the extent possible. We can help by answering your questions about metal buying prices and strategy, providing our opinion and assessment about steel and other metal prices, and providing information about how to best work with service centers, mills, and scrap metal recycling centers for cost savings. We have over 60 years’ worth of experience in the scrap metal industry and can provide expert insight as such.
To learn more about metal prices in 2021 and strategies for your business related to metal buying and selling, call Belson Steel Center Scrap Inc. directly today. We are here to answer your questions and be your source for buying and selling scrap metal!
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