The need to become more efficent

**mthomasdev** · 10-16-2015, 12:02 PM

As most of you know, prices have been tumbling this year. My main yard stopped buying light iron about 2 weeks ago. I spoke with the manager and he explained the situation and also told me what their trucking costs were. These costs were set by the shredding company. Today, they are back to paying a little. They apparently found someone else for trucking and the savings were enough to allow for some payment. In addition, the yard is spending more time picking the shred pile. I just wonder why these and other effecincies were not implemented when times were good.
Bottom line is there is always areas where we can improve our bottom line. Hopefully, we can all find them and stay profitable.

**Riversedge** · 10-20-2015, 03:47 PM

Smaller yards that are not sitting next to shredders are starting to fade away. It is bad times when there are talks the price could go down again in November.

**AdmiralAluminum** · 10-20-2015, 04:05 PM

Originally Posted by Riversedge

Smaller yards that are not sitting next to shredders are starting to fade away. It is bad times when there are talks the price could go down again in November.

The price almost always goes down in November, doesn't it? It's the fact that prices are so low already that it could drop to nothing that is scary. I wonder if I will be driving by stoves and dryers left in the snow this winter because no one will pick them up? I doubt it but if my yard stops paying I will load my backyard til it's full and then sit on it all til Spring.

**hobo finds** · 10-20-2015, 04:10 PM

Yards need steel!

**Scrappah** · 10-20-2015, 07:01 PM

It's hard to explain but i think it's most efficient to go where the money is.

For example: You could expend a lot of time & operating cost fiddling with light iron for little or no return.

On the other hand you could go after heavy steel. That pays better and racks up a lot of weight in a short amount of time.

**Riversedge** · 10-21-2015, 10:59 AM

Originally Posted by AdmiralAluminum

The price almost always goes down in November, doesn't it? It's the fact that prices are so low already that it could drop to nothing that is scary. I wonder if I will be driving by stoves and dryers left in the snow this winter because no one will pick them up? I doubt it but if my yard stops paying I will load my backyard til it's full and then sit on it all til Spring.

I do not see prices creeping back up until early spring. I also do not think we will see shred or white goods going above $100 net ton until at least 2nd or 3rd quarter 2016. Everything revolves around China, Turkey, USA housing and Automobile production. Auto Manufacturers are sitting on a big inventory and are not buying raw steel stock like they were earlier in the year. China is in a depression and are teetering towards buying steel again. The USA housing market looks great looking forward which at this time is the best bet for more finished steel production. It sucks because everything is based on world markets anymore. Turkey has wars going on all around them so like I read in another post they are sitting back waiting.

The best bet on recycling is E-Waste and Non-Ferrous recycling. E-Waste brings great margins considering most of it is free when people throw it in the trash.

The need to become more efficent

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