Demolition companies have begun paying for the right to take on contracts to secure the recovery of metals such as steel and copper over their rivals.
According to a report in the Financial Times, because of the increasing value of copper and steel demolition companies are fiercely competing for contracts to demolish sites high in metal like oil refineries, power stations and old breweries.
Trade body the National Federation of Demolition Contractors chief executive Howard Button told the FT: “Everybody in the sector is chasing work demolishing things like bridges and electricity sub-staions.
“If you get the right contract, keep the labour costs down and the market for scrap stays high, you make a lot of money.”
Chinese demand for copper has increased recently, pushing the price of the metal up to $9,500 a tonne for the first time in more than two months. Until a few weeks ago, the price of the metal had dropped down to $8,500 as China restricted buying.