On Trading with Scrap Metal in the Czech Market

Abstract:

The paper focuses on trading with scrap metal in the Czech market with the goal to investigate how this market is organized when it comes to the relationships between its different actors. The text shows that there are three basic types of actors that are present in the market: originators of scrap, scrap processors and end customers (either domestic or foreign ones). Moreover, in the market there exists specialized trading companies that, despite formally acting as processors, ordinarily do not process any scrap and only connect processors with prospective clients. The relationship between all these actors are graphically illustrated in the text, also in regard to export/import activities. Moreover, it is said that the level of trading with scrap in a specific region is closely tied to the level of industry producing and/or demanding scrap there. In the Czech Republic, it is the north-east region where trading with scrap is most vital. This paper is not finding any predecessors in the Central Europe area and is to serve as starting point for further research.