How the Construction Industry influences the Price of Metals The construction industry is a well-funded industry that dominates the market when it comesto buying and selling metals. This is why its decisions indirectly lead to fluctuations in the price of metals worldwide.
The construction industry is currently one of the biggest consumers of aluminium, steel and iron as of today; simply because of the growing population. This growing population worldwide never seems to take a break either—it never will! This is why countries with larger populations like China and India, always create a demand for metals which is hard to satiate; driving the price of metals through the roof. The use of metal in construction in general, has come a long way since cities started commissioning taller buildings back in the late 19th century because of the lack of space. Taller buildings simply used less area across the ground, and floors could be piled up until the base of the building could no longer bear any more weight. Using lighter materials such as wood helped and led to floors climbing higher. But this again led to instability and even the collapse of tall towers which meant better options for structural strength had to be formulated and put into production.
The use of iron soon became widespread in building construction in the 20th century since it could give buildings a more solid structure while growing taller and wider. This is when there was gradual rise in the price of metals, because of massive construction projects that took place leading to a shortage. But iron like other construction materials, too had its limits. Firstly, iron was heavy and with increased load on the top, the beams and rods below would simply flex and bend. Secondly, Iron had a major problem with the weather. Iron rusts when exposed to moisture, meaning that iron beams used in construction had to be painted to keep the moisture out—else they would simply crumble over time. What this also meant, was that the structures that used the iron rods would either need to be brought down or the rods and beams had to be replaced after a couple of decades
The use of aluminium in construction is a new concept but builders prefer it to iron simply because it weighs less and can bear a weight equivalent to that of an iron casting of the same shape if designed well. Aluminium is also weatherproof and can be easily treated to either increase its durability, malleability or resistance to different temperatures. Aluminium is very expensive to produce in comparison to iron and steel which requires less treatment and processing from ore to metal. But thankfully a lot of aluminium already exists over the years because of its usage in various industries. This means that scrap aluminium (as feedstock or ingots) is available for use from scrap metal recyclers in the plentiful. Industries simply have to tap into scrap yards and then accordingly re-melt and re-utilize the metal; casting it into another shape and form. What makes aluminium better than the rest is that recycling aluminium barely consumes 5% of the energy when compared to obtaining and processing the ore into virgin aluminium.
As of today aluminium is used in building and construction, from awnings for patios to large structural beams and castings; and also for the facades of skyscrapers like in the case of the Burj Khalifa in Dubai. The scrap metal business has made huge contributions to the construction industry satiating the needs of manufacturers and suppliers who again deliver to developers. A massive project like the Burj Khalifa itself can bring about a noticeable difference in the price of metals locally. But there are a lot of projects that go on simultaneously globally which is why the price of metals fluctuates accordingly. Such projects also utilize miles and miles of copper wires which again need to be mined; and can only be sustained well when it comes back from recycling companies. The price of metals always fluctuates depending on the demand for it; which is why the construction industry today is a major player in this market.