Declines in the Price of Scrap Metal Recycling

Although scrap metal collection has been profitable in the past, the price of metals has declined sharply since the mid-to-late 2000s. After weathering a rough period after the 2008 financial crisis and enduring tougher market conditions in 2015, the metal industry struggled the most in 2019.

In 2019 specifically, various types of recycled aluminum reached a 30-year low. The restrictions placed by China on importing recyclables from the United States in May 2018, coupled with the steel and aluminum tariffs imposed on Chinese imports by President Trump in June 2018, compounded the effect of the earlier downturns.

Likewise, the retaliatory tariffs from China—who is one of the biggest importers of the scrap metal produced in the United States—have had an unfavorable impact on the metal industry, leaving the U.S. with a surplus of metal. While the surplus has resulted in lower prices for manufacturers purchasing metals such as aluminum for production, it has driven down the rates and demand for scrap metal recycling.

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