What are we going to do with our scrap metal

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Discussion Overview

The discussion revolves around the challenges and potential solutions related to the scrap metal market, particularly in light of China's influence on global scrap metal prices and recycling practices. Participants explore the implications of market changes, recycling economics, and the environmental impact of scrap metal management.

Discussion Character

  • Debate/contested
  • Exploratory
  • Technical explanation

Main Points Raised

  • Some participants suggest that the influx of cheap metal from China has disrupted the profitability of scrap metal dealers, leading to questions about the future of scrap management.
  • Others argue that recycling metal remains more cost-effective than mining, and propose that stockpiling scrap metal may be a temporary solution until market conditions stabilize.
  • One participant highlights the global repercussions of China's slowdown, noting that the country has historically relied on importing scrap metal without developing its own recycling industry, which may change as they begin to manage their surplus of junk vehicles.
  • Concerns are raised about the UK scrap market, where the lack of a domestic steel industry and China's stockpiling of scrap may lead to increased instances of illegal dumping or fly tipping.

Areas of Agreement / Disagreement

Participants express differing views on the future of the scrap metal market, with no consensus on the best course of action or the long-term implications of China's policies and market behavior.

Contextual Notes

Limitations include the dependence on fluctuating market conditions, the potential for environmental impacts due to illegal dumping, and the unresolved status of recycling practices in China.

wolram
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Because China has flooded the market with cheap metal scrap dealers can no longer make money off of ferrous
metals, so what now, what can one do with the tones of metal scrap?
 
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Recycling metal is generally less expensive than mining/extraction. If some market quirk has temporarily rendered arbitrage impossible, I expect we'll stockpile the scrap metal until the balance has returned to normal. Either in a scrap yard... or landfill.
If the scrap dealers cannot currently make money, then they'll lower the price they are willing to pay for scrap until they are profitable again.
 
The slowdown in China has global repercussions in the scrap metal industry. What are we going to do with our scrap metal may bring some big surprises considering how many vehicles we crush and recycle in the USA. China has a plentiful supply of junk vehicles because they are pulling them off of the road and piling them up if they pollute.

China has been a voracious importer of scrap metal. Apparently since they have been importing scrap metal they never developed a scrap metal recycling industry. It will be interesting to see what happens to global recycling when China starts to crush their own over supply of junk automobiles.

Millions of cars, motorbikes and lorries are being left on the scrap heap in China every year in a bid by the government to cut pollution levels.

In one scrap yard in the city of Hangzhou, an incredible 100,000 vehicles have piled up after being taken off the road because they did not meet the national emissions standard. A similar picture can be seen right across the country.

The pictures in the link tell the story.

http://www.dailymail.co.uk/news/peo...vernment-aggressively-aims-cut-emissions.html
 
GB, no longer has a steel industry.
http://www.theguardian.com/business...el-expected-to-announce-1200-job-losses-in-uk
And with China holding so much stock it seems that there is no where for UK scrap to go, scrap yards have all ready started to refuse (light crap) things like white goods, push bikes etc the only way they will take it is to pay, so what is going to happen, people will resort to fly tipping.
 

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