Highlights
– Increased pace of construction and development throughout China and India creates tremendous demand for construction materials
– Higher prices in metal commodities prove a catalyst for scrap metal robberies
– Increased demand and inflated prices will continue to spur criminal activity
On July 7, 2008, thieves concealing a dismantled bridge in the bed of their truck were pulled over by police in central Russia. The criminals were transporting an eight-ton pontoon bridge to be melted down into scrap metal. Robberies of this kind, while daring, are not unique as this is the second bridge robbery to occur in the region. Such robberies have been occurring on an increasing scale across the globe due, in large part, to the increased price of construction materials such as iron, copper, tin, and platinum.
The demand for construction materials as a whole is increasing due to the rapid influx of construction in both China and India. Dramatic urbanization in both countries combined with significant events like the 2008 Beijing Olympics, the 2010 Asian games to be held in Guangzhou, China, and the completion of the Three Gorges Dam have required substantial supplies of construction materials.
The increased demand for such materials is resulting in sharp increases in the trading prices on the London Metals Exchange and has spurred scrap metal robberies around the world to satisfy demand.
Heavy Metal
Over the past two years, the price of iron ore has increased over 100 percent, topping out at nearly 150 cents per dry metric tonne of ore. Iron, the essential building block of industrial grade steel, can be found in a variety of places to include: drainage pipes, fire hydrants, stoves, and manhole covers. Manhole covers, in particular, are being stolen on a global scale at astonishing rates. Calcutta, India witnessed over 10,000 manhole covers stolen off of their streets over the period of a few months. In Beijing, Chinese officials have estimated in 2004 that, “240,000 manhole and street drain covers were stolen.” The trend in manhole cover thefts is beginning to occur with great regularity in Western Europe and the Americas, as well. Scrap iron thefts are being reported in increasing numbers from Lima, Peru, London, England, Ottawa, Canada, and in the United States from Milwaukee, Wisconsin to Long Beach, California.
The price of copper has increased nearly 250 percent in the past three years and is currently trading on the London Metals Exchange over US$8,000 a tonne. Scrap metal thieves are pilfering construction sites, remote utilities stations, and abandoned houses in order to steal the copper wiring and piping found throughout these structures. Additionally, criminals around the world are harnessing the copper found in power lines, streetlights, and public art made out of the metal. On July 10, 2008 in Sydney, Australia, robbers stole a massive copper fountain at the Penrith Regional Gallery. Similarly, scrap thieves in 2005 stole a bronze Henry Moore sculpture weighing over 2 tones, requiring the use of a crane to lift the object.
Consequences
The theft of scrap metal from such sources has direct security implications for local, regional and national governments as it impacts significant elements of a country’s critical infrastructure. Power cables, used by utility companies to link customers to their power stations, are primarily composed of insulation and copper wire. When these cables are stolen, the electrical grid is interrupted and customers lose service.
Another common target for copper thieves are communication towers, and telephone lines, which if severed or incapacitated can interfere with vital emergency communication. Missing manhole covers can significantly complicate flooding by not properly channeling water into the appropriate regions. Additionally, falling through missing manhole covers or street grates could be a potentially fatal accident due to the ineffective emergency response services generally characteristic of developing countries.
Outlook
Scrap metal robberies will continue to be a problem for both law enforcement officials and business owners. As long as the demand for commodities such as iron and copper remain high there will be a market for cheap, stolen scrap metal readily available.