September 13, 2016
Metal Industry Trends
Here at CARS, our team likes to stay up-to-date with trends happening within the industry; ensuring our partners have successful programs throughout the year.
Over the past year, the metal industry has been affected by foreign and local economic factors causing a decline in metal prices. Factors such as China’s devalue in currency has had an influence on the U.S. economy, leading the U.S. dollar to increase in value. The fluctuation of the U.S. dollar has a strong correlation with U.S. metal prices. With a strong U.S. dollar, metal prices usually decrease due to it taking less dollars to purchase the same amount of metal.
Downward trends in metal prices isn’t necessarily bad. Price of metal has caused the value of cars to decrease, meaning the price of overall vehicles has become more affordable. As more people are able to purchase new or used vehicles, the likelihood of overall vehicle donations increases. More individuals are choosing to donate their vehicles instead of selling them, which is an opportunity that should be taken advantage of, since market conditions are estimated to remain the same for the next 4-5 years, with slight growth here and there. So even though the value of cars is decreasing, the actual amount of donated vehicles is increasing.
Our marketing team is well informed about the trends affecting the metal industry and we’re more than happy to talk about them in further detail with you.
Marketing Support: marketingsupport@careasy.org
References:
https://www.arscars.com/scrap-metal-market-august-2016/
http://marketrealist.com/2016/05/precious-metals-drop-us-dollar-indexs-rebound/
http://www.scrapmonster.com/news/scrap-news
http://americanrecycler.com/8568759/index.php/news/metal-recycling/1519-metals-market-meltdown