Perspectives

Scrap Metal Market: December 2016

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The metal market was able to stop the skid for the time being as scrap prices for crushed auto bodies increased nationally 4.1% since last month.  The average price per gross ton is now up to about $136.  The end of the year increase is encouraging after three straight months of steady decline.

Metal Market: Crushed Autobody Index December 2016

An article from The American Recycler, titled “Steel Industry Mergers and Acquisitions Slows” states that in the steel market, merger and acquisition activity has slowed in both volume and value of transactions.  According to Brian Grant, managing director at Conway MacKenzie Inc., an international consulting and financial advisory firm,¹

“The steel industry is consolidating,” Grant said. “Steel has always been a highly cyclical industry with periods of excess production capacity, but the present state of the industry is different than previous downturns.”

Looking ahead a Wall Street Journal article quotes Argonaut Research in that, “We expect to see more consolidation in the commodity futures markets and a possible spillover in equity markets.”²

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NOTE: All figures are believed to be reliable and represent approximate pricing based on information obtained prior to publication. Data is sourced from American Recycler, London Metal Exchange, iScrap App, and Scrap Monster.  Advanced Remarketing Services is not responsible for the accuracy or completeness of the information provided, or for the use or application of information herein.
Zack LaskyScrap Metal Market: December 2016

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