The scrap copper market around the world is very much influenced by the market dynamics of the conventional commodities markets - with the effects of supply and demand dictating the ups and downs of pricing. Depending on global conditions, market watchers are always forecasting trends, and evaluating increases and decreases in supplies from copper mines around the world. But behind the scenes, there are additional “deposits” of copper that aren’t showing up on the stock market – these are so-called “deposits” of scrap copper.
In Vaughan, Ontario, and throughout the suburbs of York Region, scrap metal dealers like Tal Metal provide top dollar for scrap copper, based on the various fluctuations of the market. A trusted name in metal recycling, Tal Metal is a leading recycler of scrap in the region, with a reputation for offering the best prices.
Traditionally, scrap copper comes from such sources as discarded copper wiring and copper tubing - everything from old air conditioning units, to cars, to building materials. In addition, and in large supply, are copper “off-cuts” which come directly from factories and manufacturing facilities. It all contributes to the “hidden deposits” of scrap copper.
Industry statistics show that about one third of the world’s copper consumption is from scrap. And when demand for copper starts to exceed the supply (mostly from copper ore) then higher prices for both virgin copper and scrap copper abound. Naturally, the opposite equation applies when demand diminishes. By example, scrap copper supplies tend to drop in volume when the manufacturing sector is sluggish – it’s because fewer goods are produced, fewer “off-cuts” are created, and in general, there is less waste. Furthermore, slower economic growth around the world results in fewer people scrapping air conditioners, cars and other copper-laden products. And when you consider that China itself needs 60% of the world’s copper scrap just for its own smelting industry, it’s easy to see how the dynamics of the marketplace can affect us in Vaughan, and the communities of York Region.
Interestingly, production problems at various copper mines around the globe also have the potential to cause havoc in the market. Production shutdowns, accidents, and other disruptions have a way of causing copper inventories to fluctuate, causing additional uncertainties in the market, and creating price variations as a result. Whether its suppliers, consumers or traders, all are affected and all respond and react in their own way. Although supply and demand dynamics can also bring the copper market into relative balance, there are industry experts who believe that the scrap copper segment of the market often acts as a stabilizing force amidst all the fluctuations. It seems that there is continuity for the recycling of copper cables, copper wiring and copper tubing. But apart from global influences and commodity directed market forces, copper is still number one in metals recycling, and quality is always a primary consideration. Pricing will always be based on the grade of scrap material – on the purity, on the condition of the scrap, and on various other factors affecting the copper content.
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