Is your scrap yard dead?

By dead I don't mean dying. I mean the amount of scrap flow into the yard and the piles are very very small and everything is processed. I noticed a majority of the yards are almost cleaned up in my area and most of there materials is processed waiting to be shipped out. All we pretty much have left in the yard we are doing contract cutting in is unprepared shear heavy melt, rebar and torch material. There is no clip and plate. It seems as if ever since this debt limit deal went down to the wire that material has fallen off a cliff. It also doesn't help the markets are down 30 bucks plus a ton this month. Anyone else seeing the same thing I am seeing? Whats your opinion on it?

Its a sad sad day when a scrap dealer goes under pick and choose who you sell you to. Cash flow isn't a problem with yards handling thousands of tons a month they usually have the cash on hand for rainy days. Remember what goes up must go down.

This just feels all to similar to 2008 almost to a T. The only difference this time around is the scrap yards aren't sitting on thousands and thousands of tons of material that they bought at 500 a ton and couldn't sell any of it till the middle of 2009. At a severe loss.

Originally Posted by Mick

My opinion (FWIW) would be the yards are needing cash flow but suppliers are holding back. I just heard yesterday that one yard around here went under. I knew they were having problems. The day I went there, it was closed since a check of theirs had bounced that morning. He said they'd reopen as soon as a check for their last load came in. That was a couple months ago. Now, apparently, they're out of business completely.

YEt another reason to not take a check for your metals. There is nothing to keep them from going out of business and you not getting paid for your load.

WOW as you can see by my last post here it is the exact opposite.

I dropped off a few tons of light steel 11 days ago. The place was a madhouse at 11:30 on a Saturday morning. They had just enough cash to pay me in small bills. They said they had been overwhelmed that morning. I went back to the same place yesterday to drop off some non-ferrous. The place was dead. Their sheet iron price was down, but I could not believe there was nothing coming in. I saw no ferrous coming in at all. I was there 40 minutes or so. There were a couple small loads of non-ferrous in the back of pickup trucks and some bags of cans in cars. I was the only one with a trailer.

I will be going to another yard tomorrow to drop off a very small load of sheet. They are paying more, so it will be interesting to see how busy they are. It's actually the last I have. As a part time scrapper, I noticed a big drop off in stuff on the curb 3 to 4 weeks ago. I also stopped getting calls from my regular places. I originally thought there were just that many more scrappers out there. But I haven't seen much in the back of anyone elses truck either, so I thought perhaps there just isn't as much being put out. Does the amount of scrap on a curb foretell an economic downturn? I haven't seen many scrappers on the road since last week either. Today, while I was doing something else, I saw a cast aluminum grill. I couldn't get it and completely forgot about it. Hours later I drove by and it was still there. That would not have happened even 10 days ago.

this would be the time for those with a little cash to buy from smaller scrappers, if you can hold till spring, you will likely double your money. with light iron down to .o6 I dont see it getting much lower. alu is down to bottom, copper could still drop some.

Originally Posted by 01GTB

I will be going to another yard tomorrow to drop off a very small load of sheet. They are paying more, so it will be interesting to see how busy they are.

Just got back. They were in fact paying $250 per ton. The highest around. And the place was dead. I commented on it to the woman working there. She said it had been really slow all week.

Went from lines to get on the scale to nothing. The last 3 times I went I was the only one there. The machinery was quiet and the yard was the cleanest I've ever seen it. Creepy.