Recent market data indicates that global scrap prices have experienced a remarkable recovery, increasing by 1.5 to 2 times compared to levels at the beginning of the year. This substantial rebound is largely attributed to a tightening in supply alongside a surge in demand for recycled metals—a trend that is energizing the scrap metal and recycling sectors.
Key factors contributing to this recovery include:
- Tightening Supply: As production cuts and logistical challenges reduce the availability of scrap, prices have naturally climbed.
- Rising Demand: Increased demand from both domestic and international markets for recycled materials has further driven up scrap prices.
- Market Fundamentals: Improved economic conditions and greater investment in recycling technologies have bolstered market confidence, leading to higher price levels.
Industry experts suggest that this upward trend in scrap prices could lead to better margins for recyclers and impact the overall cost structure in downstream industries, such as steel production. With market fundamentals showing renewed strength, stakeholders are optimistic about sustained growth and more stable pricing in the near term.
Vietnam Steel by Hoa Sen Group
