Storms Cloud the Visibility for Scrap

Pictures of countless cars and trucks submerged in Houston floodwaters and homes shattered by high winds in the Southeast have the worth of a thousand words in describing the destruction from Hurricanes Harvey and Irma. What they say about post-storm conditions in the ferrous scrap market is less clear. For those who assume thousands of scrapped vehicles and home appliances will soon flood the market with material, it’s not that simple, explains scrap guru Mike Marley of the World Steel Exchange Market.

When unforeseen natural disasters occur, many presume the sudden and unexpected excess of supply will drastically and quickly lower scrap prices. That’s generally not the case.