Scrap Price Drop in May 2013 - Page 2

Gangel, My prices are locked in for what I do. The only thing I can't control is the price os propane but the more I buy the cheaper it gets. Buying 2000 gallons at a time helps me lower my price by buying in bulk. I wouldn't use walmart as an example for anything business either. There business plan isn't the same one that sam walton had in mind when he started that company years ago. I know my costs per month to operate month to month. Prices can go up or down copperhead and it doesn't affect me that much. I don't own the yard. I just process there torch material for them. When the price goes down it does affect the flow of scrap into the yard. This also has an affect on the mill though because lower prices mean less product to buy and that makes for a tight market. The mill will have to raise there prices in order to improve scrap being sold to them. I would look for a June or July bounce back though. You also have to keep in mind its feast and famine in the scrap industry. Up or down the yards are still going to ship scrap you can't sit on it hoping that it goes up next month when you are dealing in 1,000's of tons a month. You need to have cash flow at the end of the day to keep operating. Here is an interesting little new story I found the other day enjoy it. Its about sims yard in jersey and its there crown jewel of a yard. There shredder can eat through 4,000 tons of material a day and they have some 200+ employees working there on a daily basis.

Behold the Mega Shredder: Jersey City recycling plant turns cars to confetti in seconds | NJ.com

Excellent article, thanks for sharing it!

Originally Posted by PistoneScrapProcessing

I am probably one of the largest scrap processors of scrap locomotives in the USA. We move insane amounts of weight on a daily basis.

Oh I would love to scrap a whole train!!!! Just for the experience of doing it!!
Sorry off topic a little...

Originally Posted by Mechanic688

Around here the price of gas just went up today .30. It's 3.85 right now.

Jeeze! It hasn't gone below $3.82 here for at least like 2 months or so... I'm jealous

Well, the train kept a-rollin', all night long

Or I keep a-walking to most the places I go!
lol

I know I'm an idiot, but huh?

Someone please help me.

I work in the building industry. New housing starts are up this year. Means more metal to be consumed specially for copper. Don't forgot other things can drive prices up, strikes at mines, natural disasters, politics (war)

here in South Africa, the rate for steel went up by 30c per kg & shred-which we call sub grade went up by 50c per kg
i suppose thats the reason why the yards been very busy this few weeks- everyone who had their scrap stockpiled, rushed to take advantage of the increase.

I see E-scrap took a hit since 14 days ago. Must be what Robsrecyling writes about.

here we get $280 per ton for shred & $314 for steel

Wisconsin shred at $230 ton, heavy farm scrap at $250 ton.

Originally Posted by TheRecycler

Here is the nail in the coffin, don't pay for scrap and no matter what the prices are, you come out always with 100% profit.

Here's the nail in -that- coffin. Don't pay for scrap around here, and you'll be lucky to end the day with half a pickup load of shred/tin, with maybe a couple lucky non-ferrous finds. You'll also have some great days with awesome loads, but those are balanced out by the days where you only end up with an old lawn mower, a dryer, and someone's old 3-spd bike. Nothing left after gas, truck maintenance/replacement, or buying lunch. And we're sure as hell not talking a CoryCouch lunch either. But hey, "it's all profit!", so you're golden.

Now you take someone who pays for scrap. Many of your days are pre-planned, because you have customers calling you to schedule pickups, where 3-4 stops at most maxes out your truck with nice heavy steel. The same customers who tell scrappers looking for free scrap to take a flying leap.

So nope, it's not "all profit" for me. But I'm ok with that.

On the fast side - gas and time I put in $10 and expect it to allow me to find material wile I go to yard and back, seem to always find gas $$ at least but one never knows.