If the commodity prices fall below a certain point, then it become uneconomical for the smelters to run. The first ones to shut will be the ones in more expensive locations and so on. Thats the self correcting mechanism of commodity prices. Irrespective of the price of primary metal, and depending on the metal, the recycled cost will always be cheaper. For example, Aluminium is very energy extensive and geography specific to produce. Hence recycling is always a better alternative.
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