The Canmaker: A collapse in demand for recycled post-consumer steel means that from today Corus will pay nothing for used steel cans delivered to its CanRoute collection centres in the UK.
Six months ago, more than £200 was being paid for each tonne of recycled scrap steel, a figure that recently dropped to £10.
The move is being blamed on the global economic slowdown which has resulted in a decline in demand for new steel products in the UK, particularly in the automotive and construction sectors.
Corus said that the price collapse had been caused by a massive decline for steel products in the construction and automotive industries, which are at a virtual standstill due to the credit crunch. Poor demand from China and India is also behind the low prices.
Corus Steel Packaging Recycling manager David Williams said: "We've been told to expect 6 months of a difficult situation. It might pick up in the new year." He added that a turnaround in demand from the Asian economies would also help the situation. The collapse in demand has hit a number of other materials and is likely to be bad news for local authorities and other organisation who rely on sales of collected waste for recycling.
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