Over the past several years, there has been a tremendous demand for scrap metal of all flavors. Prices have been high. Demand has been so fierce that recycling yards have been frantically accepting every pound of metal they can get their hands on–secure in the knowledge that all of it would be sold the moment it is dropped onto a rail car and shipped out.
Unfortunately, that demand largely flowed from the explosive industrial and infrastructure growth happening in China; and then it was followed by a collapse in output that came as a result of Chinese manufactured goods largely being reduced to pariah status.
This does not mean that the scrap markets are dead, just that they are returning to their historical norms with more modest prices being offered, and perhaps a little more discrimination as to what will and will not be bought. All markets rebalance constantly, and the scrap industry is no different from the others. Even though Chinese demand is off, other nations are ramping up to capture the market share. Ultimately, companies still need a supply of raw materials to feed their growing industrial bases.
So far, as it pertains to the business of metal recycling Houston, the market is reasonably well-positioned to take advantage of whatever opportunities remain. Despite market ups and downs, recycling scrap metal is still very good business when it comes to helping to preserve the environment. Houston Metal recycling continues to produce much needed industry goods, while at the same time working within the community to preserve its vital natural resources of water, soil, and air by reducing waste and conserving energy at recycling plants.
Moreover, the scrap metal industry serves in close proximity to a large source of supply–namely, oil field surplus. Houston is well-served by road, rail, and maritime links to a nearby country that is witnessing an expansion of its industrial base–namely, Mexico. It also has a continuing need for metal goods to service its own regional activities, which means that cargo shippers are not stuck dead-heading back from their foreign deliveries. It may not be the best time for Houston metal recycling at the moment, but at least the market industry is a little bit better than it is elsewhere.