As we approach the middle of fall 2016, many factors are at play that will influence the scrap metal market.
Just as many events occur throughout the year, certain seasons, holidays, elections and annual changes will contribute to the ebb and flow of commodity value in the economy. We briefly want to show you how with each of the upcoming events…
- Monday, October 31, 2016 = Halloween
- Sunday, November 6, 2016 = Daylight Saving Time Ends
- Tuesday, November 8, 2016 = Election Day
- Thursday, November 24, 2016 – Thanksgiving Day
October 31, Halloween
We’ve all heard that a rise in spending stimulates the economy. This is obviously a good thing when it comes to the stock forecasts. This year, an estimated $8.4 billion dollars will be spent during Halloween by an estimated 171 million people. This steadily increasing trend is primarily based on the fact that it is easy to spend for and is relatively affordable to have fun for Halloween. When Halloween is affordable, retail sales increase and in turn increases wholesaling and manufacturing. Retail sales are a reliable indicator of consumer demand that drives our economy.
November 6, Daylight Saving Time Ends
There’s always been two sides to the debate about the benefits of Daylight Saving Time. Primarily, it depends on who it affects most at a certain time of day. But either way, it does effect the economy. Moving clocks forward benefits retail, sports, tourism and activities after working hours. This creates the opposite effect for outdoor entertainment, farming and the extra expense in general that companies face to accommodate the time shift. It’s been debatable for many reasons and hasn’t been shown to really save any energy since it becomes darker in the morning hours, which requires the same amount of energy as darker evening hours.
It’s also been shown to be bad for your health due to lack of sleep and contributes to lost productivity and therefore hurts the economy. No matter what side you fall on, the effects of the time change affect everyone and therefore we all feel its affects. This in turn means the economy is impacted and you can expect a change in stock speculations and the commodities market.
November 8, Election Day
With almost every type of major election that takes place, uncertainty causes a shift in the economic outlook. This uncertainty causes slower recovery from low prices and more drops in prices. Any new proposed regulations or policies and the addition of the state economy’s weariness can influence it either way. After the election, the new president’s economic policies may stimulate the economy which is good of course to help invest in infrastructure and therefore it will determine the direction of the scrap market. Once new policies are in place, how the US works with exports and import taxes can also affect where the prices go.
November 24, Thanksgiving Day
Just as with Halloween and other annual celebrations, Thanksgiving time is a big contributor to stimulating consumer spending and economic growth. Many people do not realize that this national observance was moved on the calendar during FDR’s presidency to lengthen the Christmas shopping season. So, this in fact plays a bigger role in the economic outlook. Even though Black Friday isn’t the biggest spending day of every year, it’s easy to see its impact on the major holiday spending trend. Consumer spending in general increases the GDP and creates more jobs.
So when you get ready to cast your ballot on election day, or get a jump start on your holiday gift shopping, keep in mind that it will affect the economy and ultimately the stocks, which reflect commodities like metal, and the value of the scrap metal you bring to our recycling facility.
What you may not know about scrap metal recycling in the economy:
- The scrap recycling industry provides jobs to millions of people
- The scrap recycling industry generates tax revenues for federal, state and local governments.
- The scrap commodities manufactured by the scrap recycling industry have a huge demand not just within the US, but even in other countries.
Doing Our Part
Every week, TT&E sells millions of pounds of recycled metal directly to end users of recycled metal to make into new products, thus reducing the amount of waste in landfills or metals that would have to be mined.
TT&E Iron and Metal
Recycling for a Better Tomorrow