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Article: High steel price helps carmakers with end-of-life legislation; Recycling old cars becomes big business.(News)
- Article from:
- Automotive News Europe
- Article date:
- June 27, 2005
- Author:
CopyrightCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Richard Feast
Global steel shortages have provided an unexpected reprieve for automakers as they prepare to meet new European Union laws that will govern vehicle recycling 18 months from now.
The present high price of the commodity looks likely to make the environmental initiative a success because it will underwrite the extra cost of recycling.
"The issue's been saved by the current price of scrap steel," explains Max Pemberton, an analyst at autelligence.com in London.
Global demand has pushed the price of a ton of scrap steel to [euro]220 from less than [euro]100 a few years ago.
"As long as the price stays high, ...