Despite falling commodity prices over the past six months, Ferris Metal Recyclers, a metal recycler in South Australia, has continued to grow its business.
Recent statistics from the Reserve Bank of Australia show commodity prices fell by 1% in September, after dropping by 2.8% in August. This was mainly due to a decline in coal and iron ore prices.
This seems to be a continuing trend. In just the last six months, prices have seen a 65% reduction and although the falling Australian dollar has helped to balance this, it has not been enough to completely avoid the effects of the price drop.
And the outlook for the past year is also gloomy. Commodities have fallen by more than 20% in 12 months and this has the Australian government and its people a little worried about what the future might hold.
Thankfully for us here at Ferris Metal Recyclers, we’ve managed to avoid this drop and our business has in fact grown over the same period.
How have we managed this? Mainly through our strong partnerships – partnerships that we pride ourselves on – with others in the industry. These include alliances with those working in the trade, industrial, government and local council sectors.
We’ve managed to keep these partnerships water tight by continuing to provide top quality services and great prices to these clients.
Although many commodities industries may be seeing a dip, scrap metal is still well and truly in the game. In the UK, some industry sources even say they expect a bigger growth in scrap volumes than some raw steel.
The demand for scrap is increasing as companies decide to upgrade their products or recycle old materials that may have been sitting around for a period of time. These companies are realising that they could be sitting on some cold hard cash, so they are bringing these materials to us to recycle.
And most importantly, many businesses are realising that scrap metal can be used instead of primary resources, saving them money through these recycling measures.
It is thought that over time, the value of scrap will continue to increase as a decline in demand for both iron ore and metallurgical coal becomes more evident.
In fact, there’s proof scrap metal use is already on the rise. Ferrous scrap metal exports reached 92.8 million metric tonnes in worldwide trading last year, and 94.3 million metric tonnes in imports.