Scrap prices are going to plummet in July

I wish I had good news but next month is going to be murder again. I just heard down at a minimum at least 50 dollars or more. Mills aren't even planning on buying next month or are going to keep there orders at the bare bare bare minimum. Could this be 08 all over again? Are we back in a recession? How much of a role is the euro and Greece playing into this? Those are just a few of the questions I have.

There is not a thing any of us can do about it, except, be thankful for SMF, you and others, that are able and willing to give us a heads up, so we can adjust how we do things. The better informed we are, the better decisions we can make.
There are things that I personally will get moved on, asap. There are other things I have been setting aside to sell and hopefully they will help offset the drop at the scales. Either way, most of us will get up and work our butts off and do the best we can. One of the best things I can do, is NOT spend...on things that I may want, but really do not need right now.
Thanks, Pistone, for keeping us all informed. BroJer

omigosh and holy cow! thanks for the heads up. I am so glad I have area space to stockpile during these times.

I guess I'll hoard the good stuff and take in all the metals. It is just a hobby to me and I get everything free good luck guys...

Guess I shoulda had the friends and family who visited my lil sandbar this week come in July. Ah well, more time to break things down and enjoy some more beach/ocean time.

Much thanks for the heads up.

Sirscrapalot - sitting on the dock of the..err..atlantic..

This wouldn't surprise me a bit. Prices at my local yards here in west central FL have dropped quite a bit for steel. The last time I hauled any ferrous was a couple tons of mixed steel @.12/lb. Now 3 weeks later it's down to .7/lb. The owner at the yard I frequent most told me off the record he expects steel to hit .4/lb as the summer wears on.

The only things holding steady around here are batteries, and some non ferrous items such as electric motors, alloy rims etc.

I'm hoarding everything I can.

I read a book about Andrew Carnegie and every time a recession hit he expanded and retooled. Labor and materials are at there least expensive at this time. My plan is in hopes of a drop in prices I will advertise more agrressively. Now is the time to build relationships, make phone calls, drop off flyers, let people know you are here. As the junkies, idiots, and thiefs find more lucrative exploits we can all turn it up a notch. If you continue to remind people of the service you provide when they need hauling or metals and electronics removed your name will ring in their ears like McDonald's when someone says Big Mac. Business cards are under $40 per 1000 on ebay, a web site cost about as much a year as you get for a nicely stuffed bag of alum. cans, invest in your business and it will grow. One good truck load will pay for the cards. I keep mine in my truck and wallet. Anytime I meet someone or they need my number I give them one. On the front is my name, phone, email, and website. On the back is the stuff we take.

Thanks for the info!

I drove by our scrap yard in Peoria Il. Today and noticed they may be stock piling there material also.Until today I have not ever noticed the mongo piles setting around!

To some, Carnegie represents the idea of the American dream. He was an immigrant from Scotland who came to America and became successful. He is not only known for his successes but his enormous amounts of philanthropist works, not only to charities but also to promote democracy and independence to colonized countries

Personally I think it has to do with the election. If you look at prices in the past they drop like crazy about 6 months before the election and slowly recover. All prices drops. Gas, metals, etc. The good thing is.that it will thin the herd.all ready I've been receiving a ton of material because others don't want to waste their time. Gonna put out 2000 flyers in the neighborhood tomorrow. Hopefully I get a couple of bites.

I hauled for years at $30-50/ton (at $1.50 gas mind you) and cleaned up...so few people do it when prices are low it is all yours. I horded CU/Brass/ and cats and then banked big time. I agree expand when prices drop and keep your regulars happy, you get more of the pie. I will be adjusting down what I pay next week..If possible it would be a good time to stock pile heavy,dense iron (brake drums,cylinder heads,etc.). The Leeb analysis holds..gas weakens and so do metals, gas prices up metals follow 3-4 months later. It will do a "jagged stair step" over time (when you look at the graph of prices over time).Keep on scrappin'!

Originally Posted by street_sweeper

To some, Carnegie represents the idea of the American dream. He was an immigrant from Scotland who came to America and became successful. He is not only known for his successes but his enormous amounts of philanthropist works, not only to charities but also to promote democracy and independence to colonized countries

Carnegie also made his fortune by insider trading to start in the steel industry by getting tips about the railroad while he worked there. He did revolutionize the open hearth melting process though and improved upon it to where you could mass produce steel products. He also was as anti union as it gets and to this day union employees won't step foot inside any building bearing his name because of it. He did regret the decision to use the pinkertons to try and quell the uprising at his mill and it split his friendship with henry frick and caused him great pain until the day he died.

I agree Carnegie was anti-union. Of the lessons I learned from him one is how I would not treat my employees. He did make great advances in the steel making process BUT keep in mind it was the people he hired and paid well that made the advances in his name. His greatest ability was a gift to spot talent court it and maximize on its potential.