Quick, call the police.

Throughout the past several months, as copper prices continued to climb, many handlers of scrap said that a correction was inevitable. However, prices continued to climb, past $1.50 per pound, $1.60 per pound, until prices topped $2 per pound. Now, with copper scrap prices at record highs, the cacophony of voices calling for a significant correction to more sustainable levels has grown.

However, most copper scrap processors say they still see strong markets for the material, though the fundamental prices are far too high.

A negative side effect to the growth in copper scrap prices is the increase in theft. With prices at record levels with no sign of cooling, more scrap dealers are reporting copper scrap shipment thefts, with the thieves trying to deliver the stolen material to other area yards.

While increased theft is a harbinger of a surging market, for many handlers of the red metal, the market is at a level now where no one is even contemplating holding on to any of the material.

A consensus, in the United States and overseas, is that the high prices can't go on forever. However, this same attitude was expressed several quarters ago, but, with the exception of a few dips, prices have been climbing almost vertically over the past 12-plus months.

Many are forecasting a sharp correction in prices, as large orders, especially to China, disappear. This philosophy is keeping most scrap dealers from holding on to material any longer than they have to.

On the domestic side, supply is tighter. The result of the much higher copper scrap prices has been more obsolete scrap being pulled out of basements, garages and other places. There are indications that some unscrupulous peddlers are even stripping some buildings of copper pipe to sell to local scrap yards.

Several processors who purchase copper scrap through retail trade say that peddlers are bringing in more copper in light of the high prices.

Regardless of the expectations of future market conditions, many copper scrap handlers say they are keeping the material flowing quickly, leaving nothing in inventory.

Demand remains robust. While China continues to play an active role in the market, more handlers of the grade say that the growing role of hedge funds are helping to drive the market. With these financial houses placing big bets on copper markets, as well as other commodities, many handlers of the metals are left susceptible to the volatile nature of the grade.

While domestic consumers have long had to contend with strong Chinese buying, several processors note that the handful of domestic consumers still operating are seeing much better pricing for their finished product. Additionally, vendors say that, when possible, some consumers look to substitute different types and grades of copper to offset higher prices.

Despite the influx of obsolete scrap material, many scrap recyclers feel that there is a shortage of supply on hand. Although several mining projects are coming online that should add to the overall availability of copper, world demand also is expected to keep pace, which may work to minimize any downward decline in light of a jump in supply.

Although overshadowed by copper, aluminum scrap markets also have been heating up. Over the past several months, aluminum prices have been climbing. One Midwestern scrap dealer says aluminum markets are "so strong," with buying across the board, that supplies of aluminum scrap are also tightening up.

One good thing for many domestic producers is that while aluminum scrap prices have climbed, demand for finished aluminum also has increased, allowing for better profits for the companies.

(Additional news about nonferrous scrap, including breaking news and consuming industry reports, is available online at www.RecyclingToday.com.)