Driven by the global hunger for scrap metal, the junkyards in Defu Industrial Estate have grown increasingly crowded over the years. And they say one man’s junk is another man’s treasure.

Photo story by Ng Wai Mun, for the writing contest.

LINED with bumpy dirt tracks and filled with a hotchpotch of warehouses and workshops dealing in different activities, the Defu Industrial Estate is known by many as a shoddy place.

“Nobody likes to venture here, because they say it is filled with rubbish and the air is full of dirt, ” says Kuak Boon Seng, 56, owner of scrap recycling company Boon Seng Recycling Pte Ltd.

“But, it is definitely the place to be if you want to make good money out of all these metal,” he adds, pointing to piles of scrap occupying his junkyard sitting on the piece of rented land along Defu Lane 7.

The invisible hand of scrap metal economics is indeed hard at work here in Defu Industrial Estate, home and haven to recyclers and traders, commonly known as karung guni men, who wish to tap into this lucrative business.

Every day, trucks queue for the scales at the junkyard and their backs are filled with unrecognisable scrap poking from the top of the load, rattling as the vehicle inches forward to empty the pile.

This routine is familiar to 50-year-old hardware trader Ng Ser Siong, whose lorry rumbles into the junkyard lot a few times every day, as he drives his batches of collected scrap there for sale.

The small outfit that he runs, Heng Huat Siong Hardware Trader, deals with steel, copper and aluminium.

These metals can be found in drink cans, copper wires, and electrical appliances like refrigerators and rice cookers, sold to him by the man on the street.

“I started out almost 25 years ago as a “karung guni” man who picks up whatever I can find on the streets. But, somehow my business just grew bigger and better.” – Ser Siong

“I have no shortage of supply. This place is getting so crowded, because everyone wants a piece of the business,” he says.

The worldwide hunger for scrap, driven by rising metal prices has drawn some people to the streets, scavenging for precious metal. This economy of scrap has trickled into diverse corners of society, and even retiress and foreigners are joining in to earn some extra money.

Often confused with waste, scrap, in fact, has significant monetary value. Ferrous metal is usually sent to a local steel mill for recycling or exported. For non-ferrous metal scrap, it is sorted and exported overseas for recycling.

Just last year alone, 872,000 tonnes of ferrous metal scrap was generated. The amount of non-ferrous metal scrap generated registered at 57,600 tonnes.

For bigger companies such as Hup Lee Leong Pte. Ltd and Fook Seng Fatt, both located in Defu Industrial Estate, most scrap metal collected by their junkyards are exported overseas to countries in the region to feed booming trading houses, factories and mills.

Owners recognise that the scrap metal business has lots of potential. Most, determined to expand their businesses, have invested in excavators, magnets, and automated scales. Aluminium scrap can then be pressed, compressed and compacted by machinery, increasing productivity.

On the other hand, although traders who own smaller outfits are envious of the bigger brothers, they are contented with what they have achieved.

“I started out almost 25 years ago as a “karung guni” man who picks up whatever I can find on the streets. But, somehow my business just grew bigger and better,” quips Ser Siong.

His one-man outfit has since grew into a full-fledged metal trading company. Ten years ago, he diversified into dealing with electronic scrap, and this decision has been proven to be right, as sales from the precious metals found in computers and laptops now form the bulk of his earnings.

“Now, there are some people who call me ‘big boss’ when they see me,” he says, grinning.

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