Recycling company The Reclamation Group says that, on account of the already installed increased consumer capacity and the advent of new melting facilities already in the pipeline, over the next 12 to 18 months, a free-market situation will once again prevail within the borders of South Africa, which could and should drive scrap metal prices back to current levels and perhaps even beyond. Like most commodities, pricing drivers for scrap metal are determined by the economic principles of supply and demand. Initially, the short-term excess could drive prices lower, but not lower than a level where it is no longer commercially viable to collect scrap metal, as the consuming industry cannot afford for the flow of scrap to dry up, adds The Reclamation Group chairperson Dave Kassel.
from Engineering News | Home https://ift.tt/jHKhw5c
