To Catch a Thief
These measures — both federal and state — have the full cooperation of many scrap dealers. The Institute of Recycling Industries (ISRI), Washington, D.C., a trade association for scrap yards, has created a theft alert system to notify its members about specific theft incidents and set up an awareness program with the National Crime Prevention Council, Arlington, Va. It has also made available to its members best practices for avoiding hot scrap metal.
Despite the new laws and practices, there are still some shady dealers, called the “gray market” — around 1% of the total industry — willing to buy the scrap with no questions asked in order to turn around and sell it to legitimate dealers. In this case, the thieves would receive considerably less for their efforts (around $1.50 a pound). It has also been reported that some thieves trade scrap for drugs in lieu of money.
Prior knowledge
Of all the measures used to combat the copper theft epidemic, the most effective have been awareness and cooperation programs involving local police departments and the public. In fact, several thieves have been apprehended literally up a pole after police were given instructions as to where to look for them. To raise public awareness, RSI posts video footage of actual incidents on its Web site at http://www.coppertheft.info/videos_of_actual_incidents.asp.
Without prior knowledge of thefts in the area, the uniformed Mesa police officer wouldn't have been tipped off to the presence of criminal activity by darkened streetlights. “What's helped the police department the most is my manager has assigned me the task of staying on top of this,” Mason says. “I notify the police officers and analysts. All the wire thefts come through me, and I funnel all the information to 31 police officers and analysts.”
Mesa uses a mapping system to track incidents. It also take samples of wire left behind to provide lot numbers, manufacturer name, date, insulation rating and wire size. “Sometimes, they can't strip the wire, so they try to sell it with the insulation on,” Mason says. “This has helped the police officers a lot.”
Finally, the most effective weapon against copper theft in Mesa has been a board with copper wiring in different sizes and from different locations throughout the city mounted onto it, which the department uses to teach patrol officers and detectives what different types of wiring look like and where they come from. “It takes the police department a while to build their evidence, but they usually catch the thieves,” says Mason. “I'm aware of 11 suspects that have been captured since July 1, 2007.”
The arrests themselves can act as a theft deterrent, but according to Mason, in this climate, eventually there's always someone else desperate enough to take the chance. “Several times when they make these arrests, the wire thefts go way down,” Mason says. “But then somebody new gets in on it.”
Sidebar: Copper's Downside Potential
Despite a market still in deficit conditions and a low inventory, copper prices are expected to decline in 2009, according to John Mothersole, principal, Pricing and Purchasing Service, Global Insight, a Washington, D.C.-based economic and financial analysis firm. In a building materials outlook, Mothersole presented copper as a commodity in price decline, with a small surplus expected in 2008 that widens out in 2009, pointing to even lower prices. “It's good news for copper,” he says.
Currently, prices are less than $6,000 per metric ton, but have the downside potential to achieve marginal costs near $4,000 per metric ton. The only gray cloud on the price break horizon is that Chilean mining remains troubled, which could potentially cause bottlenecks for inventory and higher costs.
When asked if the price decline should provide some relief from the copper theft epidemic, Mothersole responded, “Without a doubt. It may take some time, but there will be some relief.”
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© 2012 Penton Business Media, Inc.
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