Shed price rising

Shred went up 10 bucks a ton at my local yard yesterday-does this mean the downturn is over?

No. The price in February may be the same or down . I have been in this business for over 20 years. The buyers and brokers are telling me 2016 will be like 2015. They are telling me no quick turn around.

@matador probably lost more money they are gonna make if they have been hoarding it when the price has done nothing but decline for a year and three months. Cash flow is probably the main reason. I would say over 50 percent of the yards currently in operation are having cash flow problems with the prolonged downturn in the commodities market.

Just a newbie question here..What if people hoard and the yards get no business would that not put the squeeze on them and force a rise in price?

Originally Posted by MrSteve

Just a newbie question here..What if people hoard and the yards get no business would that not put the squeeze on them and force a rise in price?

yards do not control the prices, they sell based on the price they are receiving "order pricing, or market pricing" if your yard receives no scrap they will eventually CLOSE!!!

V/r HT1

Originally Posted by MrSteve

Just a newbie question here..What if people hoard and the yards get no business would that not put the squeeze on them and force a rise in price?

That could put the yard out of business. They can't pay you more for scrap than their scrap buyer pays them for the scrap. That would definitly put them out of business. And the less yards in the area, the less competition, the lower the prices, because there is no competition for business.

I sell all my appliances to a used appliance store. I get 10 bucks each for the fugly ones and 20 bucks for the nicer ones.

I used to sell my appliances to a place too but he got over stocked and only wants newer stuff now

Originally Posted by bullion

Shred went up 10 bucks a ton at my local yard yesterday-does this mean the downturn is over?

Shred's up $15.00 to $55.00 per tonne here in Ottawa. My feeling is that this is due to the arrival of snow cover (which reduces supply) and increased interest from US buyers because of our low dollar. At the current exchange rate, $55.00 Cdn is about $39.00 US. This is probably a bargain for the bigger scrap outfits just across the line in New York state.

Bullion, what are you getting for shred? I seem to recall you were in Alberta. If you're close to the mini mill in the Edmonton area, you're probably getting better prices than here in Ottawa.

It would be like pee in an ocean. And some facts about just that here... 12 Easy Ways to Urinate in the Ocean Discreetly - wikiHow

MrSteve- There's 1 company here in my metro that takes steel and they have 2 locations. Their 2nd one is new and is located only a couple miles away from me so I see their steel piles frequently (haven't been there since early Nov.). My impression is that most of the steel they have coming in is from larger businesses that have stuff as a by product of what they do including broken down equipment such as an occasional RR car. This stuff is in the various companies way and they really don't care what the steel price, only that it has to be gone so they can keep on what they're doing. Sure, they companies getting rid of such stuff would like top dollar but they're not going to wait around for it. Their excess steel is generally just a PIA. I think the amount of steel coming in from smaller type guys with a pu and a long trailer has virtually ceased at this time. Last time I took in "tin" (what they call light steel here) it was $10 a ton. Although I still see at least 1 guy on the local CL advertising to pick up people's old appliances for free so a few pick-ups are still going across the scale but probably not many...

Otto Vancouver Island here. 40 dollars an m/t right now up from 30 last week

Originally Posted by bullion

Otto Vancouver Island here. 40 dollars an m/t right now up from 30 last week

Yeah, your location is hurting your prices. The cost of getting truckloads off the island would be a hindrance. Although, if your srcap yard could barge to Seattle, they might be able to get better prices. Then again, the Seattle mill doesn't have any local competition so they could pay less.

https://www.steel.org/Making%20Steel...dVersion6.ashx

I've heard the same as Missouri, possible drop in Febuary again

Schnitzer has 3 yards here so does ABC they both barge loads off the island monthly.