On June 23rd, the British people voted to leave the European Union.
For many industries, this enormous decision means that there will be major uncertainties and changes, some of which will continue for years to come.
But how will Brexit affect the scrap metal industry? Read on for our predictions on what will happen to the prices of scrap metal now that Britain is leaving the EU.
If you would like to read about the evolution of recycling and scrap metal, click here.
Uncertain times lie ahead
We are now in uncertain times. As the UK has chosen to leave the EU, there are many uncertainties surrounding the metal and recycling industries.
It’s due to these uncertainties that it is likely that the price of scrap metal will be affected, especially due to the fact that many investors may choose to put their investments into other stocks and shares.
As investors in the metal markets are concerned over uncertainties, price fluctuations may occur. For example, we could see recycled copper and lead shift more, as trade deals are negotiated between Britain and the rest of the world.
Trade between the UK and other countries
These uncertain times will continue until trade agreements are put in place between the UK and other countries.
Trade with the rest of the EU is very unlikely to cease altogether, as ferrous and non-ferrous metals are essential to the production of most industrial processes.
It is worth keeping in mind that it could take two years or longer for Britain to fully exit the EU. However, this is unlikely to change the opinions of investors who may view the UK as a riskier place to do short term business.
Remember: These are just estimates. There are people who believe that the UK is now in a fantastic position to begin trading with countries further afield, and so this could have a positive impact on the metal industry.
In these uncertain times, one thing is for sure, you need to go to a metal dealer that you can trust.
Here at Maxilead, we have over 30 years experience in recycling scrap metal, and are one of the largest family owned scrap metal recycling companies in the North West.