This scrap company image, has touched the most raw nerve in my body .. China cannot get enough steel scrap to feed her industries, so the scrap price has rocketed. Scrap is a vital part of steel making, believe it or not .. all furnaces rely on a large % of scrap to produce good quality steel. Using scrap for furnace feed, lowers costs, and improves end product quality, because scrap has a known quality, minimal impurities as compared to iron ore, and takes less energy to turn into fresh steel.
China produced 241 million tonnes of finished steel last year .. the first time in the worlds history, ANY country produced more than 200 million tonnes of steel in one year .. and production is slated to increase by double digit %'s in the next few years, from both domestic and world demand.
Scrap steel is bringing US$200 to US$250 a ton in the U.S. .. we in Australia, are a lot closer to China .. and the local major scrap dealer is offering AU$35 a tonne (US$26 ton) for heavy scrap .. delivered and sized ..
The local major scrap dealer has just reported massive increases in profit .. much to the CEO's surprise!
No mention is made on % of ROI .. but I guess the CEO will be handsomely rewarded for his financial astuteness .. again ..
Strange thing is .. I can go round up ANY abandoned bogmobile and drop it at the local recyclers and get AU$100 (US$74) for it, provided its complete .. AU$50 (US$37) if they come and collect it.
Methinks there is a large smelly fish in this equation ..