The reason why the supply exceeds demand is the decrease of 1, and the reason why the price of scrap iron has been falling all the way is that the supply of scrap iron exceeds demand in the market. According to industry insiders, with the slowdown of economic growth and the overall situation of structural adjustment, the demand in the steel market has declined, and overcapacity in some steel mills is the main reason for the sharp decline in the scrap iron market.

2. Scrap iron refers to the waste iron products and scraps produced during processing, which can be recycled after processing. Scrap iron is a derivative of iron. Since there was iron, there has been scrap iron. In ancient times, scrap iron was almost useless, and it was only in modern times that it began to be reused or smelted again. This trend mainly appeared after the British industrial revolution and began to affect the whole world. The scrap metal in the market is in a state of decline, and scrap iron, scrap aluminum and scrap copper have all declined to varying degrees. Scrap iron and scrap aluminum have the largest decline, with scrap aluminum down about 4,000 yuan per ton, scrap iron down about 1000 yuan per ton, and scrap copper the smallest. Judging from the price drop of the above types of scrap metal, there are many reasons for the current price drop of scrap metal, which are analyzed below.

3. The previous increase was too large, and some people were the shadow of speculation. The market has a general trend of following the trend of speculation, and now it is facing a natural decline after speculation.

4. The market demand has greatly increased, steel mills have a great demand for scrap iron, and the processing capacity of scrap aluminum and copper is also increasing, so there is a contradiction between large demand and small supply, which leads to a round of increase in scrap metal prices.

Thirdly, in the past few years, the price of scrap metal was low and the recovery was small, and its stable price trend was changed and entered the upward range, which was the result of the metal periodic law.

5. The rise and fall of market price is the law of the market, which is determined by the relationship between supply and demand. Every commodity has to go through highs and lows, plus human factors, and finally form the current ending.

Based on the above analysis, we can understand various doorways and knowledge points of scrap metal recycling market. It can be seen that the scrap metal recycling market needs to learn a lot of knowledge. People who need to recycle have all kinds of knowledge reserves and need to have the ability to analyze and judge, distinguish market trends from complex markets, make accurate judgments, and deny that interests will be damaged. Only by learning all kinds of recycling knowledge can we earn more and greater benefits in the future recycling process.