Recycling businesses across the country need to unite together to get a workable metals theft bill through the federal government. It appears one is well on its way and it currently has provisions that are detrimental to the scrap industry. Here are some of the provisions which make it seem like scrap dealers are the problem:

• Be required to keep records of secondary metal purchases, including the name and address of the seller, the transaction date, the amount and description of the metal purchased, and the number from the seller’s driver’s license or other government-issued ID card;

• Maintain these records for a minimum of two years and make them available to law enforcement agencies to assist them in tracking down and prosecuting metal thieves.

• Perform transactions of more than $75 by check instead of cash; and,

• Not pay cash to the same seller within a 48-hour period to dissuade sellers from trying to circumvent the check payment requirement.

The wide majority of scrap dealers in the country are trying to work with law enforcement to reduce the amount of stolen material being processed simply because it makes good business sense. There is also a strong move to increase recycling in this country and yet this type of legislation hampers a recycling center’s ability to do business. A good way to reduce the amount of recycling going on is to pass legislation like this.

We need better. Write your senators and representatives and let them know that you want to see a bill passed but one that doesn’t restrict recyclers from doing business honestly.

To contact your senators, go here: http://www.senate.gov/general/contact_information/senators_cfm.cfm

For House of Representatives, go here: https://writerep.house.gov/writerep/welcome.shtml

November saw scrap iron prices continuing to skid with prices dropping $60-$100 per ton since October. Not that anyone is shipping very much scrap – at least not in our neighborhood. The fact that it hasn’t hit bottom seems to support the theory that it will take a long time to climb back out of the hole. So, what are your predictions on the time line? How long will it take before scrap begins to move at normal rates again?

In case you haven’t heard, scrap markets have essentially come to a standstill. While that shouldn’t be news to most of us, what may be is the latest forecast for recovery.  Steel mills have and continue to cut their production significantly which in turn reduces their need for scrap. This spiral downward continues to push back the expected date of reaching the bottom in scrap prices. Now, there is talk of no turn around in production levels until at least second quarter of 2009.

While this may seem to be all doom and gloom, there is a bright spot in the picture. Those companies that have prepared themselves for these times, are going to come out of it even stronger with much of the competition disappearing as cash flow comes to a screeching halt.