Why are prices dropping?

I agree with some of your points Pistone, as far as it being our own fault, that's certainly right, we wanted it cheap, we sure got that, and that "fiscal cliff" is definitely looming ever closer. As far as us scrapping Americana, I sadly feel we're doing that too. However, I also believe china is a much more dominant force than you seem to realize, although they are not a major importer of US steel US Steel exports to Europe rise 150% y-o-y in May: AIIS,1 | ScrapMonster.com they've stockpiled more raw ore than they know what to do with, and whether or not they're buying (or in this case "not buying") it from us, it has a huge effect on world prices. If you watch much world news (not the USA networks "world news" where the top stories pertain more to Madonna's Indo concert being canceled) such as BBC or NHK you'll see that China's industrial machine dominates almost every broadcast

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Originally Posted by Scrapcrazy

All good stuff guys, but what I really want to know is..... Any ideas or opinions on when prices should start to rise?

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It might be today. Clean Auto Cast on the Chicago market went up $45 per gross ton from $375 to $420

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Originally Posted by Mick

The day after you sell everything you've been saving.

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Story of my life Mick.

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Originally Posted by TMoney

PSP - I completely agree with everything that you said as far as being problems in our country. However, I do not see ballooning deficits as a catalyst for falling prices. If anything, the opposite Should be true. As the deficit grows, the dollar weakens making commodities more expensive as denominated in USD. The weird thing is that the dollar is actually appreciating. This is why scrap prices are down. A strong dollar means lower commodity prices. Take a look at the 6 month chart for the dollar. Notice the spike in May right before prices started falling.

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The reason the dollar is appreciating has less to do with any inherent strength in the dollar than it has to do with the relative weakness of other currencies (particularly the euro) right now. All currencies are weaker now than they were 20 years ago, it is just that ours is still stronger than the rest.

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Originally Posted by waredu

,,, it is just that ours is still stronger than the rest.

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or less weaker.

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Originally Posted by Mick

or less weaker.

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LOL, good one.

Right now I hearing scrap prices will be up maybe $5-$10 next month. It is all speculation until the first few days of the month though.

Here are some responses to other post in no particular order:

-Sam Walton would roll over in his grave if he saw today's Walmart. Anyone else remember when Walmart was all about "Made in the U.S.A"? That used to be their slogan, now I would bet you would be hard pressed to find ANYTHING in that store that was made in the U.S.A!

-And as far as China goes...Man they have us by the proverbial balls. They loan us money, and in turn we go and spend that money on cheap Chinese goods. When these goods break we send them back to China to scrap. They have the best scam in the history of the world going on!

- "Corporations are people." - Mitt Romney

The money that Walmart gives you for change is made in the USA. Give it time and our currency will be made outside of the USA also. We will really be in trouble when that happens.

Thats a scary thought KCR but very much possible.

PSP you are the man!!! My hatred for Walmart is beyond that of politicians..at the extreme end of the spectrum. Outside of gas I only buy from American made firms as close to me as possible. Whatever is left of US manufacturing must be supported, domestic demand for scrap would be the best for our struggling economy. Our spending is the only real vote we have left, make it count!

Key please remember that not only do we print our own money but we also own the technology and high speed printing presses to print other currencies which we currently do. I can't remember which foreign currency we print but I know there are a bunch of countries which don't own printing presses that can not print there own currency and they sub contract there printing to the US Department of Treasury.

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I can't remember which foreign currency we print but I know there are a bunch of countries which don't own printing presses that can not print there own currency and they sub contract there printing to the US Department of Treasury.

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And they can't even make a profit on doing that,

I think somebody in china just bought Beechcraft

(that's the aircraft manufacturer, not the chewing gum)

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Originally Posted by BohemianLush

now I would bet you would be hard pressed to find ANYTHING in that store that was made in the U.S.A!

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Including most customers...oops, did I just say that out loud.

It looks like my prediction of ferrous prices raising in August between $10 - $40 per ton is going to be some what correct. From what I'm reading on American Metal Market, the prime and shredded scrap prices in the Detroit market are expected to rebound between $50 and $75 per gross ton when the market settles later this week.

I can only hope that the Chicago market does the same.

What I get paid for the cars came up $10.00 today
Now $155.00 a ton or .078 a pound

Walter Zions in Middleboro Ma 02346
Bring your Iron to Walter Zion

Key it has to go up the yards are bare to the floor in most places. Gonna be hard to stay in business with no flow of scrap and nothing to ship that is prepared.

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Originally Posted by Bear

I think somebody in china just bought Beechcraft

(that's the aircraft manufacturer, not the chewing gum)

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Mean beechnut right ? Yep, beech craft got bought by the Chinese.

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Originally Posted by taterjuice

Mean beechnut right ? Yep, beech craft got bought by the Chinese.

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And I just heard today on the radio that the Chinese are in negotiations with Canada for the pipeline being that the US has rejected it. One day we might be buying Canadian oil from the Chinese, how messed up is that?

That does not surprise me one bit. Nothing surprises me anymore when it relates to our failing economy.