Auto Scrap Prices Drop
Auto Scrap Prices Drop
Here at Cleveland Scrap Cars, we are in the business of auto recycling junk cars. As a ‘cash for my car’ company, our junk vehicle buyer is very conscious of the volatility of scrap prices of materials derived from junk cars and scrap cars. For a variety of reasons the prices of scrapping automobiles has dipped to a recent low.
Dan Voorhis of the Wichita Eagle recently posted a story titled ‘Falling price of scrap squeezes metal dealers’ that attempts to explain the pricing woes as follows: “Wichita’s scrap dealers are feeling stressed as falling prices for recycled steel, copper and other metals have squashed their margins. The price of scrap iron overall fell about 20 to 25% over 2014 because of slower economic growth overseas & the strengthening dollar. Both tended to cut into exports, even as domestic demand for scrap remained flat, according to industry publication Scrap Price Bulletin. Further declines are expected in 2015.” The complete posting is available here: http://www.kansas.com/news/business/article6509514.html#storylink=cpy.
If you are reading this article to identify the exact reason for the pricing regression, you are in the wrong place, as to state a specific reason would be foolish because there are so many factors that could be contributing to the market pricing. In researching the topic, we have read and heard the following list of hypotheses:
- Reduced demand in China, India and Turkey.
- The drop in oil prices has had an effect for several reasons.
- The strengthening of the US Dollar causing increased difficulty in sealing domestic scrap overseas
- A excess of supply in the market
- Politically based circumstances overseas
- The recent massive snow storm on the East Coast hindering port activity
Auto recycling junk cars is a market driven my commodity pricing. Steel, copper and aluminum are core contributors to most market fluctuations. In this market, global economic, financial and political dynamics are most likely the origin of such changes. Here as CSC we invite you to contact our junk vehicle buyer for pricing to receive cash for my car services. Scrapping a car with us is a simple process and the lone requirements are the vehicle title and a photo ID. Our junk vehicle buyer can provide quote pricing 7 days a week and we pick up junk vehicles most days of the week (sparingly on Sunday). Obtaining cash for my car services in Cuyahoga County is simple–call (216) 282-JUNK, or visit our website.