NEW YORK (Scrap Monster): Soaring metals prices, especially copper have hit the scrap industry. According to metal recyclers the volume of scrap reaching their yard has been down for the last five years, there has been roughly a 50 percent less than in five years ago.
When metal prices took off scrap dealers cashed in, and prices have been high long enough that scrap inventory has been depleted. Also the lack of new residential and commercial construction in the region is preventing that inventory from being replenished.
The hike in copper prices is the best benchmark to analyze what has happened to the scrap market in recent years; Copper is currently trading at nearly $4 a pound, but for decades traded at 50 cents. China's exploding economy also is partly responsible for the demand for other metals with industrial use, steel, for example, is trading at $500 a ton, nwitimes.com reported.
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