By now you have heard all of the questions from the media and country about what plans President Trump has for the US economy and seemingly deteriorating infrastructure. With Donald Trump taking office on January 20, 2017 as the 45th President, we have some questions of our own about how his plans are going to affect the scrap metal industry.
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What Is President Trump Focusing On?
Since the beginning of his campaign, President Trump has taken the stance of building up the US Economy by bringing back jobs and also building up the country’s infrastructure. With those ideas a focal point for his campaign, we can expect it can be very influential on the scrap metal market and industry.
How Will His Plans Affect Scrap Metal?
If the building up the infrastructure throughout the country begins, it can be a large factor to the scrap market reaction. If the rebuilding of roads, buildings, and structures are going to begin with the new President, many materials have to be brought in to complete these projects.
Along with other materials like concrete and wood, metals will be a large part of rebuilding. Since the election in November 2016, many scrap metals have been jumping like copper and steel. We can hope that metal prices can continue to climb with the hopes that the demand for metals is boosted by the new infrastructure plans.
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Don’t Get Too Excited Yet…
Just like any other time for scrap metal markets, we can’t quite determine where and how far the prices will rise (or drop) with President Trump. Before we hope that all prices jump, there are some things to keep in mind.
- Pre-Mature Jump? – With the metal markets rallying since early November 2016 since the election, some market analysts are suggesting that the infrastructure hopes for metals may be a bit too early before the solidified plans are in place. This could cause a lull or even a drop in the markets before another possible climb in scrap prices.
- Supply Overseas – As many know, some of the factors of the drop in scrap prices in 2014-2015 was because oversea economies like China and India were stockpiling materials, thus the lower prices and low demands during that time. With those stockpiles overseas this could be a possible factor that hurts a huge rally for metal prices if it’s found that the metals are not in as high demand as some may thought.
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To really get a better sense of how the 45th Presidency is going to affect the metal markets, we suggest signing up for the iScrap App emails so that you don’t miss any of our updates. You can also check back on our blog for updates and information on regular scrap price updates.