ABSTRACT
This chapter describes the secondary copper and aluminium industries — the industries that reclaim and reprocess scrap metal. Scrap can be virtually pure metal or it can be one of many types of metal alloys containing as little as 30% copper or aluminium. The Bureau of the Census publishes concentration ratios in secondary copper and aluminium production, computed on the basis of value of shipments. Industry concentration has fluctuated from year to year; no definite trend can be seen in the secondary-copper industry, but, in the secondary-aluminium industry, concentration seems to be increasing. Marginal cost in secondary-metal production increases with recovery efficiency. The chapter presents models of pricing and output in the secondary industries are developed from the discussions of industry structure and production cost. It presents econometric estimates of secondary-price equations based on this model. Secondary-copper prices are much more volatile than are secondary-aluminium prices.
