The rising cost of metal prices including copper is causing a new rash of metal theft like hasn’t been seen in a number of years. Scrap metal prices are causing people to look around and try to locate items made of copper that they can steal easily. The U.S. government is even worried that rising copper prices will cause people to melt down copper pennies for the copper they contain. The U.S. government says if copper prices continue to rise we may see paper pennies or the penny may be removed from circulation.
Scrap metal dealers say that the price paid for scrap copper may reach $10.000 a ton in 2011 but don’t expect it to stay that high for long they say. Some metal market analysts say that some large supplies of copper may be being held off the market to drive the cost of copper up. There have been claims that the country of China is holding raw copper off the market to keep the price of scrap copper up. And with mine production for raw copper down it is also having a direct effect on the price of scrap copper.
And up the price is going and it is causing more and more people to steal copper trying to make a quick buck while the cost of copper is up. The FBI says that thieves are cashing in on the high cost of copper and the FBI are advising local police to be aggressive in tracking down and catching copper thieves before the problem becomes epidemic. The FBI are keeping a eye on newspaper articles across the United States and they say that the theft of copper and other scrap metals is at a level that has not been seen in a number of years.
Thieves are stealing copper wire and other materials trying to find copper material that will sale for number 1 heavy scrap copper. Number 1 heavy scrap copper is copper that is not coated and is clean. Some new construction sites in many states have been stripped of their copper wire and the wire is then burned off to get rid of the coatings on the wire and fix the copper so it will bring more money.
As 2011 moves into early to mid spring scrap copper prices are expected to continue to rise and most scrap metal analysts say they the price of scrap copper may not start to go down until the mid to late fall of 2011. If this is the case then copper thefts will continue and the business community purchasing scrap copper will have to continue to be careful and thoroughly check out people selling scrap copper.
The number 1 factor effecting the rising cost of scrap copper is the continuing shortage of mined copper. Scrap copper prices are also effected by the world market and recently their has been a higher than usual demand for copper and scrap copper driving up the cost of copper world wide. In effect creating a shortage of copper and inflating the price of scrap copper.
People who invested a year or two ago in copper futures are profiting from the rising cost of scrap copper and they will continue to make money as long as the price of scrap copper continues to rise.