Scrap Recycling Difficulties
Scrap Recycling Difficulties
Cleveland Scrap Cars is a scrap vehicle buyer and wrecked car buyer within the salvage car business. We are car buyers committed to recycling in an eco-friendly manner. Those with a salvage car to sell in North Olmsted, Avon and Fairview Park will be happy to know that same-day removal is available when you sell us your car. Are you seeking a wrecked car buyer in Northfield, Cuyahoga Heights, or Oakwood Village? Our scrap vehicle buyer is happy to provide you a price for a junk car right over the phone. Our next topic discusses the downturn in the scrap and recycling industry in a general sense.
In the latest edition of Scrap Magazine, Megan Quinn authored an article titled ‘Tools for Survival’ for the following highlights: “The depressing economic climate is all too familiar in the recycling industry: China’s down economy is causing a ripple effect, reducing demand for commodities while there’s an oversupply, driving prices down. Operations costs, meanwhile, only seem to go up. This economic climate is causing people to have to work smarter, and harder, and not simply wait for the markets to improve, since it might be a while. Experienced recyclers know there will be good times and bad. Commodity markets are cyclical and most recyclers believe what goes down must eventually come back up. Spirits were high between roughly 2002 and mid-2008, when commodity values were up & China’s growing demand for scrap spelled big bucks.
The recession, which started in late 2008, began to dry up credit, and push down scrap prices. The most serious problems came from buyers who canceled contracts for scrap that had already been shipped to Asia from the US and Europe. Recyclers & traders were on the hook for the shipping costs and storage while they looked for new buyers. Due in part to economic stimulus measures, the scrap markets had recovered significantly by 2011. Today’s market is the worst since the recession; there is an ongoing decline in terms of demand, business opportunities, and profitability. China’s economy is slowing down, meaning it doesn’t have the same demand for U.S. scrap to construct things like steel bridges & complexes for its expanding cities as it did after the recession. The strength of the U.S. dollar has made American scrap more expensive in foreign markets. That means Chinese and other buyers can look for better deals outside the US. The plunging prices of commodities such as iron ore, brought on from overproduction, is another problem; scrap is a less attractive when companies can just as easily buy lower-priced primary material instead. David Chiao of Uni-All Group, says that steel prices keep falling, which is dragging down steel scrap prices. It’s harder to access credit since the recession, even though interest rates are low; those who can access more credit are not typically motivated to make large purchases because they are unsure about the ROI in this economic climate. Some have escaped bigger economic problems by avoiding loans altogether. Uni-All is self-financed, which has come in handy during times like these.” The full article is available at this link.
Get a price for a junk car
We act as a wrecked car buyer, vehicle scrapper and scrap vehicle buyer throughout NE Ohio. Many people have no idea what to do with a salvage car. In our business we pretty much classify vehicles as either running or non-running. It is not possible in most cases when you sell us your car to determine what is wrong with it. Our mission is to recycle any usable components of the vehicle and then crush and shred the remaining materials for reprocessing. Our new expanded service area to the east includes Mentor, Eastlake and Chesterland. We are now offering cash for cars in the southern regional areas of Richfield, Northfield and Macedonia. Our junk car removal service is proudly serving the far western cities of Berea, Westlake and Middleburg Heights also.