VC Reporter
September 30th
By David Goldstein
Regardless of how you feel about tariffs and trade wars, there are at least two things on which nearly everyone can agree. Avoiding waste during times of limited supply is important for the economy, and recycling can avoid waste while also helping the environment.
Prices are up over 30% on products made from red metals, such as brass and copper, according to Elder Cruz, who has worked for VC Metals for 25 years and now manages retail operations for this Ventura-based business that sells a variety of metal products, ranging from rebar to pipe. He blames tension with India. “As soon as they are talking about import limitations and tariffs, prices rise,” Cruz said. He added that people are postponing projects due to uncertainty about costs.
Much of the uncertainty stems from tariffs. The federal government recently raised steel tariffs, in some cases to 50%, doubling an earlier increase. Imported steel has become much more expensive, and domestic producers are charging more as well. Auto manufacturers, construction companies and appliance makers are feeling the squeeze, with car manufacturers reporting per-vehicle steel cost increases of $450 to $600.
Yet the higher prices of new metals have not translated into windfall payouts for recyclers. Camarillo Recycling, for example, normally pays top prices for scrap metal but the company’s recent prices were $3 per pound for copper, $1.65 for brass and only 30 to 40 cents per pound for aluminum and stainless. That price disconnect between new and recycled material puzzles some recyclers. Why don’t scrap metal yards pay more to recyclers, creating excess recycling flows into the system, which would ultimately push prices back down?
According to Justin Ayers, supervisor and steel building specialist at U.S. Patriot Steel, the answer lies in global benchmarks. “The recycled metal prices don’t get determined just by whatever happens locally or even nationwide,” Ayers said. “The rates are primarily tied to global benchmarks like the London Metal Exchange (LME). While domestic U.S. prices on new steel and aluminum could be shooting up because of tariffs, recycled metals are stagnant in sync with the international trade markets.” He added that tariffs target raw materials, not scrap, creating a “market disconnect” that keeps recycled prices low.
Kyle Peacock, founder of Peacock Tariff Consulting, sees the issue through a global trade lens. “Despite high global demand for metals, recycled metal prices remain low due to a mix of trade disruptions, tariffs and market imbalances,” Peacock explained. Export restrictions have led to oversupply in U.S. domestic markets, while retaliatory measures from countries like China and India reduce opportunities abroad. “When tariffs or trade restrictions are placed on metal exports like recycled steel or copper, it becomes harder for U.S. recyclers to sell their materials abroad,” Peacock said. “That means more recycled metal stays in the U.S., increasing supply and pushing prices down.”
Peacock also noted that tariffs tend to benefit virgin metal producers, at least initially, because they can raise prices without facing as much competition from recycled exports. “Imagine a still pond disrupted by a heavy object,” Peacock said. “The waves take time to settle. That’s the market right now.”
Not everyone agrees with how tariffs were designed. International trade attorney John Anwesen, founder of Lighthill, an international trade law firm, criticized the current approach. “Washington got copper backwards,” Anwesen said. “Real risk sits in refined
metal supply, yet refined was exempted while semifinished products were taxed. We punished downstream manufacturers and left the choke point untouched.”
Regardless of tariff policy, recycling remains a proven way to reduce dependence on imports and keep material flowing to manufacturers. Metals are particularly well-suited for recycling because they can be reused indefinitely without degrading. And in Ventura County, residents have multiple options for responsible recycling.
Although it is pulled out of mixed loads and recycled, scrap metal is not officially accepted in curbside recycling carts, because large or sharp pieces can damage sorting equipment. Instead, residents can bring material directly to scrap yards such as Standard Industries in Saticoy, SA Recycling in Oxnard and Camarillo Recycling. East County residents often use facilities in the San Fernando Valley, such as Raymer Metals in Van Nuys. Municipal cleanup events and landfill drop-off days also provide opportunities, including annual free collection days for Moorpark, Thousand Oaks, Simi Valley and some unincorporated communities; metal is collected in separate bins for recycling.
Arranging a pickup is another option. Most trash collectors allow at least one free bulky item pickup per year, and some private recyclers also offer free collection of scrap metal if items are placed on private property rather than in a bin. These options make it easier to keep metal circulating in the economy instead of piling up in garages or heading to landfills.
Recycling may not eliminate the ripple effects of tariffs and trade wars, but it does buffer consumers and industries from the worst disruptions. At the very least, recycling prevents waste of valuable resources and keeps material circulating locally when international markets feel like a storm-tossed sea.
David Goldstein, Environmental Resource Analyst with the Ventura County Public Works Agency, may be reached at david.goldstein@ventura.org or 805-658-4312.
