Financial Times reports on upsurge in scrap prices.
The spike in global demand for industrial metals has sparked a fierce battle among UK demolition companies as they vie to remove scrap metal from condemned buildings.
Competition to demolish sites with a high concentration of copper and steel, such as oil refineries, power stations and old breweries, is so high that companies are paying for the right to take on contracts.
The price of a tonne of copper has soared 45 per cent during the past year to $9,400 (£5,850), while the value of nickel, a key ingredient in stainless steel, has climbed 21 per cent over the last 12 months to $23,160 a tonne.
The high values, driven by demand from China and India, have provided a fillip for the demolition industry as it looks to offset the squeeze on contract values being felt across the wider construction sector.
“Everybody in the sector is chasing work demolishing things like bridges and electricity sub-stations,” said Howard Button at the National Federation of Demolition Contractors, the industry’s trade body.
“If you get the right contract, keep the labour costs down and the market for scrap stays high, you can make a lot of money,” Mr Button added.
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