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5 April 2010


Scrap metal prices soar

Source: Times Online

A steady stream of vehicles wheeled into the Iron City Steel and Recycling Center Thursday afternoon, piled high with everything from old washing machines to steel file cabinets and aluminium cans and siding.

The last month has been busy for the scrap metal business, which has suffered through two years of an economic downturn and a terrible February, according to Victor Alfieri, one of the owners of Iron City at the Glenwillard Industrial Park in Crescent Township.

"February was just awful. The weather killed us," Alfieri said. "There were days I didn't do probably 10, 15 customers. Now I'm doing 100 customers a day. Two Saturdays ago, we did over 150 customers."

The Wall Street Journal reported that scrap iron and steel prices have increased 70% in the last year. It reported that a shortage of scrap metal used in steelmaking is driving the increase, along with increased demand by American and foreign steel producers.

Alfieri said he suspects that an easing of the recession that struck the United States in 2008 and the weather might also have something to do with his increased trade.

With the onset of nice weather, local residents are beginning to clean out basements and garages, he said. He's also seeing an increase in industrial customers.

"I've seen everything (the price of all scrap metals) moving up since the first of the year," he said. "It's been a nice steady climb. You're seeing more demolition jobs now. You're seeing the economy pick up a little."

This week, Iron City will be buying scrap known as shredder feed, which includes common household appliances, for $13 per 100 pounds. Aluminium will be selling for 65 cents per pound and copper for $3 per pound.

"It's a good income for people," Alfieri said. "How can you go wrong?"

Not only can a person clean out the house, he also can be paid for it – and paid well when you consider the weight of an old washing machine or dryer. Shredder feed also includes bicycles, filing cabinets, lawn mowers, water heaters, fans and other common household junk such as charcoal grills.

"You throw that on the curb now for the garbage, and in the morning, it's gone," Alfieri said.

Iron City mainly sells to area steel companies and end users that make something from the scrap. Alfieri said Koppel Steel, Beaver County's last remaining steel mill, is a big customer.

The company has been in Crescent for four years and typically employs 10 people. Alfieri said he was down to five or six at one point over the last two years.

But business has been so good that he is looking to hire a few more labourers.

"This is the best it's been in a year and a half," he said.