But this globalization of scrap commodities may simply be mirroring the consumption of virgin commodities, says Canaccord’s Prouty, with booming developing markets in a rush to secure resources.
“There is growing recognition that the world’s natural resources are scarce, finite, and costly to acquire,” he says.
Recycling of metals like copper and zinc is “absolutely essential today, as some research indicates that rising demand could completely exhaust the world’s supply of these metals within the next several decades,” he adds.
Given that most of the inexpensive extraction of critical resources in the world has already been done — “peak copper” anyone? — Prouty says “the high and growing costs of mining virgin natural resources create an important catalyst for increased recycling.”
This burgeoning international marketplace will be what propels the sector forward, he says.
He says the recycling industry is at a unique point in its history.
“The industry has proved its early skeptics wrong — recycling is worth it,” says Prouty. “Recycling is economical, it is profitable, and it represents one of the most pragmatic solutions readily available to conserve scarce natural resources, reduce production costs and lessen total energy consumption.”Page 4 of 4 | Prev Page