Aussie steel – the backbone of our infrastructure and countless projects and a huge contributor to our economy – finds itself in an interesting position in 2024. It’s never easy to make steel pricing predictions, yet there are always rumours, leaving local recyclers and small-scale businesses wondering: what’s in store for the year ahead?

While iron ore prices, a key steelmaking ingredient, started off strong this year, we could be in for a bumpy ride. China, the world’s steel procurer, is expected to see slower growth, potentially dampening its steel demand. This could in turn impact steel production costs worldwide.

Closer to home, the Australian dollar plays a crucial role. A stronger Australian dollar could make imported steel cheaper, putting pressure on domestic steel prices. However, this could also be a boon for local steel businesses, allowing them to import raw materials at a lower cost. This presents both opportunities and challenges for local businesses.

So, what does all this mean for the lifeblood of Australian steel, including our dedicated recyclers and small-scale businesses? There are a number of scenarios that could play out.

If iron ore prices fall significantly, the cost of producing steel could decrease. This could in turn lead to lower steel prices overall, potentially impacting the profitability of local steel recycling and small-scale steel fabrication. However, it could also open doors for increased exports, as Australian steel becomes more competitive on the global market.

On the other hand, if the Australian dollar strengthens but iron ore prices remain stable, we could see a mixed picture. When it comes to steel pricing predictions, imported steel might become cheaper, putting pressure on domestic prices. However, local recyclers could benefit from increased demand for scrap steel as steelmakers seek cost-effective alternatives.

With sustainability becoming an increasing concern for many companies, the demand for green steel – produced with lower emissions – and increased use of recycled materials could rise. This presents a great opportunity for Australian recyclers to capitalise on their local resources and expertise. For example, a small-scale business could find a niche in producing custom green steel products or offering repair and repurposing services.

Whatever direction the steel market moves in, being flexible and adapting to changes will be key for local recycling businesses. While the global stage dictates pricing a majority of the time, it’s up to locals to embrace innovation, resilience, and a focus on sustainability. For recyclers and small-scale businesses, navigating steel pricing may be challenging, but the rewards for those who adapt and innovate could be rewarding.

At Elite Recyclers, we pride ourselves on providing competitive pricing for scrap metal, which of course includes steel scraps. Whatever may be happening in the market, we’ll be paying close attention. Get in touch with us today, and we’ll help you recycle steel on a small or even large scale, and give you cash for it!