Are Lower Prices Of Scrap Better Or Worse???

I think that you're right to a certain extent. I've noticed a lot less scrappers around, which has been great for me. However, there comes a point where certain things aren't worth even dealing with anymore because of low prices. For example, I can't afford to ship in my Ni-based batteries because the price is a lot lower than it was, and shipping now costs more than they're worth.

That brings me to another point, which is the cost of everything else. Gas has been going down a bit lately, but not much. Low prices are fine if the cost of other expenses are low. However, expense prices have stayed about the same while metals prices have dropped, which means less of a profit margin. I just thought I'd point that out

I like it when scraps up. Doesnt make a difference up here though. Prices up, lots of scrappers. Prices down, still lots of scrappers, fighting for the same scrap, tryin to make a buck. I like the higher prices. I buy cars and with scrap at what it is now, i cant offer much and people say no thanks. When scraps up, i can pay 3-400 for a car. And people seem to be ok with gettin that amount.

I will take prices in the upper ranges if I can get them. I'll defend my stance:
I will use cars as my example.
Back in the day people used to have to PAY to have cars hauled off because they were just not worth anything to anyone to be worth the hassle- except junk yards and pull-a-part type places.

So say we go back to the days of steel being at $80/ton. Let us assume that at that ton rate.. every scrapper in my geographical area says "Forget it" and sells off their trailer. I decide to stay in because it may just keep my plate so full I can't keep up. I may get cars for FREE now, but I may still have to pay say $50-$100 for a car instead of $200-$300.

So I get a 3000 lb vehicle- take it to the yard and get $200 total on the body- I pay $50 for it- I profit $150
If ferrous and core prices also take a dive because of this pricing drop I will throw out some imaginary numbers:
Cat- Was $100.. now worth $25
Alternator was $6.96.. now worth $1
Copper wiring harness- was worth $1/lb.. now worth .30/lb (20 Lbs) $20 vs $6
AC Pump- was worth $5 bucks- now worth .90 cents
Rims- Were once worth $65.. now worth $25 bucks (I still have to pay $12 to have a set of 4 dismounted because that won't change) so I'd make $13 profit

So all total on this example I make $196 profit.
At current prices paying say $200 for the car.. I'd clear:
$100 Profit on the body
And Over $300 profit total.

I have to value my time.. my time is $ and to take say 6 hours to pull and clean wire from a car at $1/hour would make it not worth my time. A lot of things on the vehicle would no longer be worth the time to pull. I'd probably pull the battery, cut the cat and haul the rest in virtually untouched. I would have more scrap than I knew what to do with if everyone bailed out, but the amount of time and effort It would take to make the same amount of $ I make now- by working twice as long and twice as hard- seems like a fools errand, I would most likely just venture into different business areas that would prove to be worthy of my time.

Lets not forget that if every guy with a trailer hung it up around here- If I'd pay $50 for a car- a junkyard or a pull-a-part place would still pay $100, they can sit on vehicles for months or years and let them get picked over like a rotting carcass in the desert. I cannot compete with them now and I couldn't if prices took a dive into the hole. I spoke with a guy last night on a van.. guy said "Pull-A-Part offered me $580 for this van" I told him I can't compete with them, I just have to find people who don't get their pitch.. I can't beat them at auctions, I can't beat them with the General Public.. I just move onto the next one.

I agree completely. When scrap was at 80 ton, back when I first started, it seemed like I kept a lot more in my back pocket because my inputs were so much less. Eighty dollars a ton seemed better when gas was 2 sumten versus 150/Ton and 3.50 gas. Tires have went plumb dam outrageous, a 10 ply 16" tire that used to sell for around 120 is now 200 plus, oil is almost 4 bucks a qt for almost any brand of oil, and going to the parts store almost requires robbing a bank before.

I used to buy a hot beef sandwitch for .45, a coke or a candy bar or an icecream cone for a nickle too. just sayin.

Originally Posted by olddude

I used to buy a hot beef sandwitch for .45, a coke or a candy bar or an icecream cone for a nickle too. just sayin.

And like me guess, when I was your age billy, bread was a nickel. Lol !

Just remember when you were paying .50 for a sandwhich, an .5 for bread...

In 1950 a new house cost $8,450.00 and by 1959 was $12,400.00 More House Prices
In 1950 the average income per year was $3,210.00 and by 1959 was $5,010.00
In 1950 a gallon of gas was 18 cents and by 1959 was 25 cents
In 1950 the average cost of new car was $1,510.00 and by 1959 was $2,200.00 More Cars and Car Prices

I used the 50's cause..well..just seemed a good time frame. lol.

Anyhow..I have no thoughts on this at this moment, but keep posting ya'lls cause it's interesting seeing others take on this question.
Good thread 1956.

Edit to add : Here's the link to the site I pulled that info off of, if anyone else is interested in that kind of thing.

What Happened in the 1950s featuring News, Popular Culture, Prices and Technology

Sirscrapalot - Can't remember when bread was a nickle but remembers when gas was a buck, smokes were 2, an you could get a 6 pack for less then 7 bucks.

Sirscrapalot - Can't remember when bread was a nickle but remembers when gas was a buck, smokes were 2, an you could get a 6 pack for less then 7 bucks.

The gas station I worked in when I was in my early teens (pumping gas,yes) the price was .29 a gal. We pumped it, washed windows, checked oil all for .29 a gal.

Originally Posted by Mechanic688

Sirscrapalot - Can't remember when bread was a nickle but remembers when gas was a buck, smokes were 2, an you could get a 6 pack for less then 7 bucks.

The gas station I worked in when I was in my early teens (pumping gas,yes) the price was .29 a gal. We pumped it, washed windows, checked oil all for .29 a gal.

My grandfather owned the last Texaco in canada, my dad worked there in the early 70s. The record for most gas in a vehicle in the history of the station, was 12 bucks... He set the record, and everyone at the station that day was circled around the pump watching. (so the story goes) Those where the days by the sounds of it.

Originally Posted by jord0690

My grandfather owned the last Texaco in canada, my dad worked there in the early 70s. The record for most gas in a vehicle in the history of the station, was 12 bucks... He set the record, and everyone at the station that day was circled around the pump watching. (so the story goes) Those where the days by the sounds of it.

I also remember working that same time frame - eight hour day got $22.80 ($2.85/hr). So, where are we, really:

1971 - minimum wage $2.85 & gallon of gas $0.32 or you could buy 8.9 gallons of gas for one hour minimum wage.
2013 - federal minimum wage $7.25 & gallon of gas $3.45 or 2.1 gallons of gas for one hour @ minimum wage.

So, the US dollar is worth less than a fourth of what it was 42 years ago. So, in answer to the original question, I'd have to agree that lower prices for scrap metal are "better" under the premise that lower prices for scrap would also coincide with lower prices in general and stronger buying power for the dollar. A further result would be a stronger world economy (anyone for macro-economics?). However, I'm not ready to cash in my hoard in the hopes that'll lower scrap metal prices and save the world.

well said patriot. Ive been storing ram carbide nickel and cell phone boards since september...carbide alot longer. Its a better investment than anything else.

Heck Ive only been on this rock for 31 years but in 2000 I remember short iron at 75 a ton and sheet at 60. However the first time I put gas in a car I owned was october 1998 and I remember the price... 97 cents. Copper pipe was about a buck and a quarter then too.

My point....this is not relative the fact is for relevance wed need short iron at about 300 to make up for inflation...the dollar is the worst investment in recent history having lost 98.5 percent of its value since .

short term low is great long term low is bad just the same for high....

Originally Posted by msmoorad

im probably gonna sound stupid but i think that just to get rid of the looong queues and insane amount of time it takes to drop off a load and get paid,
it would be better to have slightly lower prices

time is money
but if youre wasting over an hour for something that should take 20 mins max-forget it.
id rather have a quick n easy visit to the scrapyard & earn a bit less instead of putting up with lots of obnoxious ppl just to get a little bit more

a frustrating visit to the yard can mess up my mood BIG time

Happiness to me is an empty truck scale when you pull in the gate.