Covid-19 has changed the life of many. Many industries have run into losses, while others have become famous and have gained innumerable amounts of profits. The construction sector is among the different sectors that have been affected due to coronavirus. Many scarp yards have been shut down. Metal prices have surged. Scarp metal merchants have seen some actual bad days in the past year due to this sudden pandemic situation.
The initial effect of Covid-19 on the scrap metal industry
When the news of the virus spread in China reached other countries, most Asian and European countries stopped their operations with China. Well, that was not a significant loss, though! But later, when the same virus is starting affecting the European population, that’s when scrap metal merchants in Worthing got the bad news.
As the spread increased in European countries, governments closed down the metal industries and halted the shipment of scrap metal. The worst affected countries like Italy and Spain had no option but to shut down all industrial plants from mid-March 2020 as lockdown began.
Industries in other countries like Germany, Austria, and the Netherlands were still producing some amounts of metal because of the need of the hour initially. Later, when the whole world went into the lockdown phase, everything stopped!
How price of metal scrap changes with a change in currency value?
Not only the pandemic, but the currency valuation of any country, is also a big concern for the scrap metal merchants. During the ongoing pandemic situation, it isn’t easy to understand the economic condition of any country. Gradually from the end of 2020, different countries have reopened their industries on a partial basis. Hence to revive the financial condition, every country will need some time. Thus the metal scraps are still in a messed up situation.
Restrictions of Covid19 impacting scrap metal growth
Some notable limits in different countries which are affecting the scarp metal industries are as follows:
- Shortage in the labour workforce due to virus spread
- Closure of sectors in different countries due to safety maintenance
- Low demand for scrap metal due to closure of related industries
- Government restrictions on movement and shipping of scrap metals between other countries
Keeping a positive vision for the future, H.D.White Ltd has been trading in scrap metal since 1956, is currently operational. We are trying to revive our business from the challenges that we’ve faced in the last year.