The global financial crisis is causing the prices of scrap metal to plummet to dizzying new lows since 1988, and scrap metal traders and recyclers are panicking.
"This is the worst in 20 years. The prices of some products have dropped more than 85 per cent," said R.A. Param, honorary secretary-general of the Malaysian Indian Metal Traders and Recyclers Association.
The drop, said Param, began in early August when the building boom in China and the Middle East stalled.
The situation is perilous now. In October 2008, 12 scrap metal yards in the Klang Valley have had to close shop.
At least 60 foreign workers have been sent home because the yards could no longer afford them.
"I can't afford them any more. I'm operating at a loss and my customers are reneging on their contracts," said Murugesan.
Two weeks ago, one of his customers in India refused to accept six containers of light scrap metal bundles from the port because he wanted to renegotiate the prices.
"That's 150 tonnes of their original 500-tonne order. They also cancelled their order for the remaining 350 tonnes."
It is understandable because low-grade scrap metal has plummeted from around 80 sen a kilo to 10 sen.
In the meantime, Murugesan is still bulk-buying from his suppliers -- mainly factories -- which he had contracted as far back as six months ago.
"I've signed contracts for RM1,560 per tonne. But with the current prices, I am selling at RM200 per tonne here.
"I'm losing RM1,360 for every tonne I sell," said the trader who has been in the business for 10 years.
Scrap metal is not the only commodity affected. All kinds of Aluminium, copper, plastic, paper and carton boxes are also hit.
A director of scrap plastic yard said his company was lucky not to have signed any procurement contract with its suppliers.
"At least we can decide how much we want to take in depending on demand."
On average, the yard, which has been in business for five years, used to sell about 200 tonnes of scrap plastic a month but now it is only about 30 tonnes.
Waier, which used to take in some 10 tonnes of scrap plastic from their suppliers a day, now accepts less than a tonne.
Ah Sou, a scrap collector who's a regular face there, was bringing in her daily collection.
Asked how her income has been affected, the 66-year-old swore profusely in Hakka.
"I'm making less than half of what I used to make every day! How to eat? How to buy things?" she asked before speeding away on her motorcycle after pocketing RM20 for her delivery.
Param said: "It's not just our livelihood but you'll also begin to see landfills filling up more quickly because the rubbish is just not worth collecting."
He said the scrap material industry had cut out a few hundred thousand tonnes of rubbish from landfills.
"I think the government needs to step in and help us."
But there will be at least one good thing that will come out of this price plunge: the pilfering of manhole covers, roofs, lightning conductors and railway lines for scrap metal will definitely lessen.
"Already we are seeing fewer people walking in here to sell us their 'collection'," said a scrap metal supervisor.
