Throughout 2016 we saw the volatility of the scrap metal market that we’ve become accustomed to. However, it ended on a high note as the average crushed auto body price climbed nearer back to the high water mark for the year. Nationally, the average price settled at roughly $160 for the month of December. This is a 14% increase from the previous month. Because things were so dire a year ago, this would equate to a 43% year-over-year increase.
Notably the zone that leads the way in growth is the southwestern (Zone 3) United States, rising 49%.
In addition to the encouraging finish for steel scrap prices, aluminum prices closed out 2016 positive as well. At a 16% year-over-year increase the average price per ton ended the year at $1,730. Especially relevant to the remarketing industry because the use of aluminum in manufacturing vehicles is increasing. An article from Forbes in 2015 notes, “the volume share of aluminum in automobiles is expected to rise from 6.6% in 2015 to 26.6% in 2025.”¹ While much more expensive then steel, there is a trade-off between weight reduction and an increase in costs.
The use of aluminum as well as more recyclable materials is something to keep an eye on in 2017.
Advanced Remarketing Services offers innovative solutions to some of the remarketing industry’s toughest questions. We navigate the confusing landscape of wholesale, salvage, and consumer markets to see the vehicles in the best venue to the most appropriate buyer base.
NOTE: All figures are believed to be reliable and represent approximate pricing based on information obtained prior to publication. Data is sourced from American Recycler, London Metal Exchange, iScrap App, and Scrap Monster. Advanced Remarketing Services is not responsible for the accuracy or completeness of the information provided, or for the use or application of information herein.