Corona: Crisis or Cash?

That Covid 19 (or the Corona virus) is going to have an effect on the global economy is obvious. The hospitality industry, hairdressers, booth builders, aviation, and many other industries and professions are already facing far-reaching consequences resulting from government decisions. Expressions like ”Smart Lockdown,” ”Loneliness Virus,” and ”1.5-meter society” were unknown in January of this year, but we can hardly hear them now.

What followed were the roaring headlines:

As a recycling company within the metal and electronics sector, we have the luxury of having a very diverse customer base. There are always sectors that are down, and there are sectors that are extra busy. The moment the vacation to Spain falls through, people like to do some gardening at home. That’s why hardware stores are busier than ever.

In contrast, for example, is the trend to work more from home. You don’t have to be an economist to understand that this does something to new car sales. The number of car repairs are also obviously a lot less. Is this a temporary trend, or is the current situation going to permanently change our view of transportation and transportation?

Our trade seems to the common man to be an abstract event taking place behind the scenes. This is not correct. You are also a link in this whole thing. When you buy a bicycle, you are buying a product composed of dozens of metals. These are all subject to the global rates of supply and demand. You simultaneously throw your old bike in the scrap bin. That then goes back into the process through the processors and smelters.

We deliver the metals and electronics you turn in to exporters and smelters. Again, the stories are diverse. We hear of aluminum smelters who have huge inventories , because the auto industry is not buying new aluminum lake. So demand is decreasing, and supply is increasing. This logically does something to yield prices for various aluminum grades. We are also hearing from governments that want to bring major infra projects in road construction and telecom to . Also, the whole energy transition, which started years ago, seems to be accelerating.

The energy transition requires many metals. Not only in quantities, but also in species. Metal recycling has the knowledge of the materials. Mining runs out, circular economy gains popularity.

We also purchase electronics scrap. The main ingredient in this is gold. Silver, palladium and platinum are also extracted from this type of scrap by the smelter. As stock markets have taken big hits, many investors are fleeing to precious metals. Savings rates are also negative these days, so money in the bank is a goal for fewer and fewer people.

At the end of this month, the 2nd quarter of 2020 ends. This is a time for many multinationals, estimation agencies and economists to start making statements about expectations. These do not appear rosy across the board. Although the differences will vary greatly by industry/sector.

What does this mean for the recycling industry? We expect continued good demand for copper and nickel. Aluminum remains difficult, as there are large stocks worldwide, and demand for aluminum scrap remains weak. Gold (and in its wake silver) is on an upward rally. Governments and investors hold physical stocks of gold. It also has industrial applications.

What does this mean for you? That separating and returning old metals and old electronics separately will become even more interesting. You already did that from an environmental standpoint, but it could well be that the yield you get from us is just 10-15% higher in the coming period. Do you find separating and sorting too laborious? Then we will do that for you.
Please feel free to call me for a good discussion about the trade, or a concrete offer for your material.