"These are the good days." Thai's how one Midwestern scrap processor put it when asked about how his business and the commodity markets that affect ii fared in 1994 and the first quarter of 1995. And he's certainly not alone in that assessment. Indeed, the last year will be remembered not only for the increased volumes of scrap metal and nonmetallic commodities bought and sold, but also for much better profit margins than the previous couple of years. But the U.S. economy has, in fact, been expanding for the past four years, as measured by gross domestic product and confirmed by a host of economic indicators. Why is it that the collective cheer for the scrap processing and recycling industries has come so late in the current business cycle? A brief look back shows that the 1990-1991 recession took a heavy toll on scrap processors and consumers alike. And, as economic recovery finally began to take hold in the economy in general-domestically as well as abroad-nonferrous recyclers were confronted with a new problem: a flood of material from the former Soviet Union following its collapse in late 1991, which depressed many commodity prices. Consequently, oversupply, not gradually improving demand, was the dominant theme until recently.
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