Scrap Metal Prospects Hit Hard by Bleak Manufacturing Output

SEATTLE (Scrap Monster): The latest World Economic Report published by the International Monetary Fund (IMF) suggests that global economic growth is being impacted by subdued manufacturing output and slowdown in international trade flows. The drastic decline in automotive demand has badly affected global scrap metal prospects. The slowdown in activity is visible across various emerging market and developing economies, it said.

Referring to industry data, the report highlighted that the Chinese Purchasing Managers Index (PMI) recorded significant decline month-on-month, falling from 49.8% in September to 49.3% in October. The U.S. manufacturing and industrial production data continued to report weak trend in October.

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The European car production has witnessed continued decline in October, mainly on account of declining demand. The slowdown in demand from automotive industry has impacted European metal sector. The sector reported abundant scrap availability, amidst weak demand. The IMF report also cited uncertain demand for electric vehicles. For instance, the electric vehicles production and sales reported significant growth slowdown during the month of September this year.