What are we going to do with our scrap metal

[wolram]

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?

 

[jackwhirl]

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.

 

[edward]

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

 

[wolram]

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.