The metal recycling industry is likely to suffer from squeezed margins for some time, the BIR Non-Ferrous Metals Division has warned.
Speaking at the organisation’s recent convention in Miami, the division’s president Robert Stein of Alter Trading in the USA said: “Margins for the scrap that merchants are handling through their processing yards continue to be compressed. Prices being paid don’t allow the merchants to replace what they sell at acceptable margins.”
He also warned that the “incredible” business years that were seen in the early years of the millennium may never be repeated again as scrap arisings are not as likely to ever be as high, even if prices for metals recover.
Legislation was often “biased” against the metals recycling industry, he added, and that BIR continues to monitor efforts to ensure that regulations and legislation encourages free trade.