Monday 20 October 2008
Sims scraps non-ferrous metal scrap trade
SYDNEY-based
Sims Group, the world’s biggest recycler, has suspended purchases of non-ferrous scrap metals.
The company says it will not buy the material because the prices are so low it could make a loss on-selling the metals.
The decision not to buy non-ferrous metal is seen as a short-term response to global price meltdowns. Scrap yard owners claim
OneSteel has also stopped its non-ferrous purchases.
The slump in global commodity prices is expected to continue for around two more years. It was caused by falls in Chinese car sales and housing construction, reducing demand for steel, copper, and aluminium, sending the prices for these metals plummeting.
The purchase suspension is likely to impact on local scrap yard dealers, who might have to cut staff or shut down if they cannot attract the big buyers.
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