Construction & Demolition Recycling
pepebaeza | Adobe Stock
In the aluminum scrap sector, contacts report that it’s a seller’s market as generation remains somewhat lighter than normal, though demand has picked up. In the red metals sector, however, sources said demand was somewhat more tepid as 2020 drew to its end.
Aluminum on the rise
“Consumers want to ensure a steady flow of material heading into 2021,” says Chad Kripke, executive vice president of Kripke Enterprises Inc., Toledo, Ohio. The company is a nonferrous scrap brokerage firm that specializes mainly in aluminum. “There is a larger than normal mix of sellers who decided to weigh heavier on the spot market versus contract business for 2021,” he adds. “Scrap processors are feeling confident that 2021 will be the year to regain some leverage. With spreads remaining tight, it is still a seller’s market for the foreseeable future.”
Stifel sees healthy 2021 for waste sector
Equity research firm sees disciplined management and sector growth benefiting waste company bottom lines next year.
For all that COVID-19 has done to the state of North American public health and the economy in 2020, the waste sector has maintained profitability and is set to see more profits accrue in 2021, says Baltimore-based equity research firm Stifel.
The company and its Group Head and Managing Director of Diversified Industrials Michael E. Hoffman have released a Solid Waste 2021 Outlook report predicting “room for upside surprise” for waste company shareholders. Hoffman and his Stifel colleagues point to cost savings “extracted” in 2020 lasting into 2021, combined with “new business growth from the strong housing cycle and lastly a better pace of mergers and acquisitions” as reasons for optimism.