The costs associated with scrapping a steel plate have become increasingly unaffordable as the market for scrap materials has grown.
As of April, scrap prices in Canada were around $4.65 per kilogram, up from around $2.80 a year ago, according to the Canadian Institute for Agriculture and Trade.
Prices for aluminum, steel and other scrap metals also have been rising.
While scrap prices are on the rise, they are still significantly below the cost of building new buildings, said Paul Elam, an economics professor at the University of Ottawa who studies the economics of construction.
Elam said it’s not clear why, but some factors, such as the size of a construction project, are likely to play a role.
Elegon said he believes that a major factor is the availability of materials for building projects.
“It is becoming more difficult for us to build in Canada, because the demand for the material is increasing, and the prices are going up,” he said.
Construction is a very profitable industry, so we see a lot of supply issues in Canada,” he added.
The Ontario government estimates that the cost for scrap material for the construction industry is around $7 million per square metre.
In Canada, there are currently over 40,000 workers in the scrap industry, said Elam.
This is going to continue,” he warned.