Plan B.

Originally Posted by dsroten

My view of pricing was always much more simplistic. Scrap prices and fuel prices are tied at the hip. When diesel hit nearly 5 bucks a gallon I was getting 14 a hundred for scrap cars. As fuel crept down so did scrap. The higher fuel costs are, the more it costs to mine and refine new ore, so the more the foundries will pay for scrap. There are of course all kinds of economic factors that determine the prices you'll receive, but the one that anybody can monitor with little effort is fuel. This is course merely my subjective opinion.

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Scrap prices are pretty simple. The world is in the economic dumpster and stopped building.

If scrap prices were tied to fuel prices food and shipping prices would have droppped along with scrap prices.

There is a money war going on to determine the world reserve (trade) currency. eastern block (Russia/China) against the western block thus the appearance of the "Brick" banking system and the Asian central bank system both developed in the last 5 years. When China decides the U.S market becomes irrelevant the SWHTF.

More then 2/3s of the worlds potential consumers are in the Asian sector of the World. China is spending Trillions of our trade dollars to modernize Africa central and south America, "for what reason"? to make them consumer nations, and to eliminate U.S. buying power and world currency domination. one of the very few threats to China's world economic domination.

Western nations are 5 or 10 year planners, eastern nations are 100 year planners.

Originally Posted by olddude

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Scrap prices are pretty simple. The world is in the economic dumpster and stopped building.

If scrap prices were tied to fuel prices food and shipping prices would have droppped along with scrap prices.

There is a money war going on to determine the world reserve (trade) currency. eastern block (Russia/China) against the western block thus the appearance of the "Brick" banking system and the Asian central bank system both developed in the last 5 years. When China decides the U.S market becomes irrelevant the SWHTF.

More then 2/3s of the worlds potential consumers are in the Asian sector of the World. China is spending Trillions of our trade dollars to modernize Africa central and south America, "for what reason"? to make them consumer nations, and to eliminate U.S. buying power and world currency domination. one of the very few threats to China's world economic domination.

Western nations are 5 or 10 year planners, eastern nations are 100 year planners.

This is pretty much spot on. It doesn't matter if your LOCAL market is booming.....everyone forgets that this is a WORLD economy that drives things derived from "scrap". Manufacturing is down globally as is demand (because of faltering economies across the board). MOST scrap ends up overseas at the manufacturing centers. They have put more restrictions on imports (China especially) and China in particular is "focusing on internal recycling rather than importing"...ie they are manipulating this market just like they have the currency market for some time now...they have a plan to usurp he US $$ as the de facto currency for world trade (seriously, this has been shown OVER AND OVER the last several years and you can read this or hear about it in any number of news outlets).

They are playing to WIN...and we are allowing it to happen. All markets are cyclical too...metals had a HUGE run for quite some time...it has to pull back eventually and then it will climb again. Precious metals are directly affected by stocks...stock market UP, precious metals down....BECAUSE it is driven by the INVESTOR $$$$, not other real factors such as manufacturing. It is opportunity cost, more money in stocks, means less in precious metals, hence prices fall.

I do not claim to know markets...far fomr it...but that is basic economic theory....the currency manipulation is far far more complex. I guess business school served me well somewhat LOL