After a few weeks of the US Government Shutdown, we wanted to take some time to discuss what effects it is having on the scrap industry. With markets always dependent and fluctuating based on recent happenings in the economy, it is always valuable to keep track of what is going on with the government and how it can affect the economy.
Luckily with the recent government shutdown, the scrap industry hasn’t seen much impact from it directly. Indirectly when anything thing of this magnitude takes place, you can also expect there to be an effect on the all of the markets. Considering the scrap industry relies heavily on the market you can expect some type of impact, either large or small to occur.
On the day the government shut the stock market saw a large drop which is expected. The market continued to fall in the following days and the scrap market began to go with it. It has seemed the last week or so however, the prices for scrap have attempted to level off a bit.
As many know, the scrap market is involved with daily exports and imports internationally. Fortunately the government shutdown and financial problems it is facing, does not have any impact on the exports and imports that are part of the regular routine of the scrap industry. The ports around the country will not be affected by the government.
Chances are that this shutdown will be relatively short (which can mean many things) but it will affect everyone more and more the longer it take to get resolved. The bottom line is that the entire economy is under financial duress right now and the government is included. Until things get figured out in the bigger picture like; debt, more jobs, etc. the shorter term will continue to be affected more and more.