Have you had your scrap car valued recently? Chances are the quote you were provided with didn’t quite live up to expectations. There are numerous factors which directly influence the price we are able to pay for your scrap vehicle which all stem from the classic law of supply and demand. Scrap metal, like any other commodity is subject to frequent price fluctuations driven by the world market. Currently, the UK and European markets have been flooded with cheap steel leading to an oversupply. With demand low and supply high the price of scrap metal has been hit hard with prices per tonne dropping sharply with little sign of recovery before the end of 2015.
Tata Steel announced the loss of 1,200 jobs across its Scunthorpe and Lanarkshire locations which followed SSI announcing the loss of 2,200 jobs at its Redcar site earlier this month. The enormous job losses, decline in steel production and resulting low value for your scrap vehicle can be attributed to China amongst other influences.
China has played an enormous role in the decline of the UK and world steel market. The Chinese economy has grown more slowly than envisioned which has resulted in a surplus of steel produced as infrastructural demands reduced. This overproduction of steel has led to China ‘dumping’ steel in the EU marketplace at uneconomic prices. Although efforts have been made by lobbyists and the Government to halt steel dumping ongoing investigations by the EU are slow and can take up to a year for a decision to be made.
Other notable influences in the decline of the UK steel industry, drop in demand for steel and subsequent low value of your scrap vehicle include the enormous costs of running a steel manufacturing plant in the UK with significantly higher energy prices than in other markets. In addition, UK steel manufacturers are also bound by tighter environmental legislation when compared to manufacturers located outside of the domestic marketplace. Many have also pointed the finger at the UK government for showing a lack of support for the steel manufacturers and even going so far as to say they ‘allowed’ them to enter a state of administration.
It is clear that the price of steel and other scrap metals isn’t set to recover any time soon. In-spite of a difficult market we are dedicated to providing the best possible quote for your unwanted vehicle. We have 85+ years’ experience in vehicle recycling and can assure you of quality service and a highly-competitive price. Furthermore, through our expertise in the selling of used car parts, damaged repairable salvage and now second-hand cars and vans we can offer a far higher price than just scrap.
To get an instant quote for your vehicle click here.