A pound of sheet iron / shred and the price of a gallon of gas - Page 3

Originally Posted by SKWrapper

I know but think about it. Everything needs transported. If fuel goes up - so does the price of buying things - and the price of metal will be affected if fuel goes too high because the yard isn't making a profit anymore either, they have to sell and their buyers use fuel to pick it up and transport etc...

If it's anything like the gas business ... the yards are just working the margins.

Industry standard in the gasoline business is a gross margin of 15 to 20 cents a gallon at the retail level. Net after expense might be a few cents more or less.

It could be something similar with the scrap yards where they just work a set margin between their buy and sell price. Price doesn't matter too much ? The key to success would be with pushing volume ?

With the way things are going these days, Time to bump this thread.

Gallon of gas in Thornton Il, $5.25/gallon

Shred at .1175/lb or 235/ton

I don't know much about steel but i do work at a gas station. Regular gas jumped twenty cents to $ 4.60 last week. It took a ten cent jump to 4.70 yesterday morning.

The pattern every year is that we get a series of price increases on the lead up to Memorial day. Gas prices level off for the summer. They drop a little in the fall and then stay level for the winter.

We're expecting gas to hit $ 5.00 / gal. by Memorial day.

Lets hope that gas prices hit their peak soon. This is causing a lot of hardship for working folks.