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This jump is very pleasant for Panevėžys entrepreneurs who live off the scrap metal trade. Regimantas from Panevėžys has been officially buying vintage vehicles from the population for fourteen years. After being dismantled, some of the used auto parts are sold to incoming buyers or through advertisements, and what remains is transported to metal shops.
Since April, it has been a lot more fun for Regimantas to participate in such activities. After all, you haven’t seen scrap buying prices since 2011.
“The scrap market is always volatile, but prices have been at a similar level for the last decade. And in the spring, they jumped until 2011. Prices, when it was possible to get 1160 liters per ton of ferrous metals, about 331 euros ”Says Regimantas.
In winter, according to him, the price of ferrous metals in supermarkets was around 140-160 euros per ton. And since April it has started to rise strongly and now manages to sell a ton at 315 euros each.
The world lacks metal
According to the seller, the price of non-ferrous metals has almost doubled recently.
Now you can earn € 6 per kilogram of copper. A kilogram of aluminum scrap is valued between 80 cents and 1 euro. In the shop, 1.10 euros are available per kilogram of scrap aluminum rims.
A kilo of brass costs about 3 euros. One kilogram of battery lead is priced at 45 cents. This metal, according to Regimantas, was not expensive.
“I think the metals market has been replaced by a shortage of raw materials in the world. Construction has expanded dramatically everywhere, with a crisis over some building materials, including metal. The United States and China above all they lack it, and these countries have a great influence on the world economy, “explained the Panevėžys resident.
The businessman is convinced that at the moment there is a peak in the price of the metal, then its prices will begin to fall.
Clean garages
Algis, the director of the metal buying site in Panevėžys, Tinklų Street, claims that the peak in metal prices has already passed and is priced at 5 to 15 euros per week.
“This afternoon we are just waiting for new metal prices. They change every week, and the most expensive two or three weeks ago,” says Algis.
According to him, a ton of ferrous metals on the market yesterday cost about 280 euros.
Some buyers are trying to raise this price by at least a few euros, thus fighting against competitors. But the interlocutor qualifies such actions as an unreliable game; in fact, “more expensive” buyers find their way around.
Until spring, according to Algis, a ton of ferrous metals cost about 200 euros. According to the interlocutor, such price jump was caused by the world construction boom.
“Scrap is used for reinforcement needed in construction, so its price has skyrocketed,” says Algis.
The jump in metal prices is very beneficial for this business, he said. After all, the supply also increased significantly.
“People have really still stockpiled metal, waiting for a more profitable time. As prices went up, so did metal bidders. It was especially plentiful in the spring, when people cleaned their garages after winter,” says Algis.
According to him, non-ferrous metals have also become more expensive since the spring. Its price rose about 30 percent in a few months.
The jumps are spectacular
The data published by the website Rekvizitai.lt, which publishes changes in the prices of raw materials, shows that the metal is really heating up on the world market.
A ton of aluminum cost $ 2,446.6 in June. Compared with May, the price rose 0.54 percent and during the year almost 56 percent.
A ton of copper cost $ 9,631.50 in June, up 67 percent year-over-year.
Economist Sigismund Mauricas says the metals market is held hostage for several reasons. And it was the pandemic crisis that laid the foundations, contrary to what was initially expected.
“The prices of metals in the world have really risen a lot. This was mainly due to the global market. With the rapid economic recovery, the demand for metal in countries, including Lithuania, has exceeded supply,” says the expert.
Temporary joy
About the pandemic, according to Ž. Maurico, strigo production, transport of some components. And the real estate and industrial sectors that needed metal have risen sharply.
No one expected, according to the economist, that these latter areas would become so strong, but they only benefited from the pandemic.
“After losing entertainment, people who closed their houses saved money and started investing in real estate: its construction, repairs. They also started buying various items, which also boosted the industry. As a result, there was a greater need for metal, ”explains Ž. Mauricas.
The expert doubts that such a metal rush will last long. This market is already cooling in some countries. The economic processes fueled by the pandemic are calming down in factories around the world – in China, Germany and the United States.
In the latter, according to the economist, the incentive programs for real estate investment are coming to an end, so construction should slow down.
“There are still doubts about the future of the coronavirus strain. But almost all states will dare to quarantine themselves again,” Ž. Mauricas.
According to him, there are already indications that the price of the metal has probably reached the ceiling.
“For some time, the situation of uncertainty may persist for a while, then prices are likely to fall drastically,” predicts the economist.
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