The Problem of Recycling and Scrap Steel Industry Owing to Financial Downturn
By Ritsumita
Posted on : 2/4/2010
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Not many are aware that the economic problem is directly related to one of the major issues of our time. The environmental issue which has been the talk of the world for quite some time has been indirectly affected by the economic downturn.
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The recent years have seen an economic downturn, which is worse than the Great Depression and is affecting most of the industries. Not many are aware that the economic problem is directly related to one of the major issues of our time. The environmental issue which has been the talk of the world for quite some time has been indirectly affected by the economic downturn. Many may feel that economy and environment are separate issues with whatsoever no connection at all. But this is not entirely true. So here are a few facts which will allow you to find connections between both.
Take for example the case of United Kingdom. Because a lot of environmental issues have been ignored in recent years, United Kingdom has been in a financial mess resulting in five quarters of loss. This has happened over the years and as a result it has strengthened the belief that ignoring environment issues can lead to a lot of economic problems. However this is a fact not only in United Kingdom but is a reality across the globe as well.
On the other hand owing to financial recession a lot of environment friendly industries too have suffered. In the recent years, one of the industries which have been heavily affected is the scrap steel industry. The sad part is that it has faced severe loss in the recent years. The economic slowdown has actually damaged the scrap steel industry. According to experts, the reason behind the downfall is obvious.
Money is short, and most people have realized the benefit of savings. They have postponed decisions about purchasing home accessories and cars both of which are known to be the source of scrap metals. These two are considered as the biggest source of scarp metals. If the source is exhausted, there is no chance of reviving the industry. According to the spokesperson of Sims Metal Management, the levels of global scrap steel have hit the bottom and the scenario will worsen by 2010. Such is the intensity of the problem, that the supply could reach dangerously low levels, which means that the scrap steel industry will receive a major blow. It might so happen that the industry altogether may stop functioning.
According to Sims Metal Management the supply of scrap metal from different western countries like United Kingdom and United Sates have reached an abysmally dangerous level resulting in financial loss which cannot be recovered in the future. The problem is that the economic incentive for recycling scrap metal is not satisfactory. People who are involved with this industry feel that they cannot earn enough money from this scrap metal industry. Apart from United Kingdom and United States, the amount of scrap metal from China has also decreased over the years and this has created trouble for the scrap metal industry all over the world. Talks are on, so that one could find a solution of the problem, but as of now, the fate of the scrap metal industry hangs in the air.
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About the author:
Ritusmita
Biswas has over 10 years of experience in media and has contributed in several
national as well as international publications like The Statesman, The Hindu,
Deccan Herald, Jetwings, Media Transasia, Sahara Times, Bohemia
(Singapore)
etc. Ritusmita has also worked as a senior editor with reputed publishing
houses like Macmillan. She has been an academic consultant with institutions
like The Princeton Review (India)
and ICFAI University.
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