The COVID-19 pandemic is still present around the world. And ever since the spread of the coronavirus, many industries are still affected by the temporary closures and slowdowns of significant business operations. One of these industries is scrap metal recycling.
Given that the manufacturing processes all over the world have decreased due to lockdowns, more and more businesses have temporarily halted their import of metal sheets and materials. Even the consumption of metal products has slowed down given that most people would practically lessen their expenses and divert all their resources to just the essential needs.
The Impact of the COVID-19 on the Industry
With the decrease in consumption of metal products, manufacturing industries have all the reason to cut the amount of metal sheets and materials that will be obtained and imported from scrap metal recycling centres. And despite the gradual resumption of business operations in some parts of the world, consumers and retailers are still anxious about obtaining and buying secondary products.
As the pandemic continues, the scrap metal recycling industry here in Australia is expected to obtain a significant decrease in terms of revenue. The profitability of the industry is likewise anticipated to decrease this year as the demand for scrap metal products continues to decline. Industry exports of scrap metal products will also decline given that the global economic activity is still finding ways to rise again.
Metal Prices and Recycling Supply Chain
Due to several lockdowns, a lot of scrap metals have failed to be shipped to different places and countries. And since businesses now reduce the production of goods and products, the demand for scrap metals is still reduced significantly. Even the demand for raw metals has declined due to the pandemic.
The reopening of economies, however, has somehow provided a glimpse of hope to the scrap metal recycling industry. Scrap metals here in Australia are now exported again to different countries, even if they are being sold at a low price. One problem, however, that is faced by some countries is that the metal prices remain to be unstable due to the scarcity of some types of metals. Some businesses hold on to their metal supply until such time that it reaches the pre-pandemic price again.
The continuous implementation of health protocols to some businesses likewise disrupts the general supply chain. Owners of scrap metal recycling centres do not have a choice but to restrict the number of people who can work in a specific place at the same time. This alone slows down the productivity rate by a huge percentage. Luckily, the whole scrap metal recycling process must still be conducted to help recover products that can still be processed, ensuring that the environment will remain free from harm.
Looking Forward to the Industry’s Future
Despite all the difficulties associated with the pandemic, the scrap metal recycling industry here in Australia remains to be hopeful given that it can provide a great alternative to raw metal products. Once the pandemic ends, the industry can surely experience a significant increase in its overall revenue, profitability, and export figures. Employment opportunities are likewise seen with the industry, which will not only boost the reliance on scrap metals but can also enhance overall economic growth.
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