Scrap as an Economic Indicator: Don't Call it Junk!

[GG]

If the market in scrap is any indication, the US can recycle the fear of a second recession into a more positive economic outlook.

"Demand is still strong, so as far as a 'double dip', forget it," says Bob Garino, director of commodities for the Institute of Scrap Recycling Industries (ISRI), a scrap industry trade group.

That's good news for the scrap industry. Like the rest of the economy, prices for scrap products—from metals and plastics, to cardboard and paper—tanked in the current recession.

"In the end, it is a commodity business and it's very global," says Rich Abramowitz, director of public affairs at Waste Management, whose firm has a scrap brokerage group with global reach. "It's like pork bellies."

The industry estimates revenues fell from $85 billion in 2008 to $70 billion in 2009. "The economic earthquake of 2008 brought startling price corrections for many metals and paper," says Garino. "Some prices (were) free-falling 40 percent."

With a domestic rebound in the manufacturing sector and growth in developing economies firming up commodity prices, Garino says that while scrap prices still aren't back to pre-bust levels across the board, growth should continue through this year.

Read more: http://www.cnbc.com/id/39270204/

[RecycleMichael]

I have been saying this for some time and have done many TV interviews talking about recycling prices as an early economic indicator.

Metals demand comes from the construction industries and paper demand shows in the manufacturing sector.

[Conan71]

#2 copper being bought for $3.00 a pound is still high enough to attract the tweaker copper thiefs.  Lock down your AC units.