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

So sheet iron dropped it is now $115 net ton so $.0575 lb.

While a gallon of gas has gone up to $2.639

That's not how it usually works around here... higher fuel costs normally mean higher scrap steel prices in the past!

What are you paying for a gallon of gas?

2.45 gallon and 1.50 N/T shred

~$2.50 a gallon and I'm getting $.08 a lb for steel in Bryan/College Station TX.

Originally Posted by eesakiwi

US$1.65 a Litre for 95 octane in NewZealand.

I dunno how many litres in a gallon, I worked it out once using the fact that in NZ a '44 Gallon drum' (3 foot high by 2 feet dia) holds 210 Litres....that a gallons 4 & 1/2 (4.5) litre.
And I must be right because a 'quart' has 1.125 litres in it.

But then I was told I was wrong. Which probably explains why we pay so **** much for our petrol here. Nobody else can figure it out either...

It might be higher taxes on a liter of fuel in N.Z. ?

https://www.aa.co.nz/cars/owning-a-car/fuel-prices-and-types/petrol/

It could be the exchange rates too. I believe most crude oil is traded in USD ? If the NZD slips against the USD that would drive up prices at the pump were you are.

The other thing is that you only have one refinery and that's tightly regulated. You could say that there's a monopoly. Competition with other refined fuel producers could help drive down gas prices.

==============

We're getting our seasonal increase on the cost of a gallon of gas here in the states now. We're coming up on our summer season and that means more leisure driving and more demand. The sales at our company gas station in the summer are roughly 2 - 3x what they are during the dead of winter.

The other thing is that our refineries switch over production seasonally. Sometimes they focus more on producing gasoline and other times they focus more on diesel, kerosene, and home heating fuel. There's little demand for #2 home heating fuel in August so that's when the price is at it's lowest every year.

There's a relationship between crude oil prices and the other commodities like steel, copper, and PM's though because they're energy intensive to produce and transport.

Anyway ... the basic idea is right. There's the relationship between scrap prices and gasoline but you just have to look a little deeper to see what's causing gas prices to go up.

Sometimes it's the normal seasonal cycle. Othertimes, it's because the price of a barrel of crude has gone up.

To much. The good news is scrap prices continue to increase faster than fuel in my area.

In the past the correlation between diesel prices and scrap has been more accurate than gas to scrap in the Midwest. As commodities the three often move with the trends. I think the rules in the past will be irrelevant in the current world market.
A clue to highlight this belief will the be the relationship between the price of a barrel of oil and the price per gallon of gas. In addition the price of scrap may not correlate to finished steel. Add to this the impact politics will have on food production and I think the direct relationship between commodities will disappear temporarily. Until the U.S. mills create a stockpile of metal, I think scrap will increase faster than fuel costs.

Originally Posted by Patriot76

To much. The good news is scrap prices continue to increase faster than fuel in my area.

In the past the correlation between diesel prices and scrap has been more accurate than gas to scrap in the Midwest. As commodities the three often move with the trends. I think the rules in the past will be irrelevant in the current world market.
A clue to highlight this belief will the be the relationship between the price of a barrel of oil and the price per gallon of gas. In addition the price of scrap may not correlate to finished steel. Add to this the impact politics will have on food production and I think the direct relationship between commodities will disappear temporarily. Until the U.S. mills create a stockpile of metal, I think scrap will increase faster than fuel costs.

Hopefully you time these increase in prices just in time for that cruise with your wife! Has to be getting close by now!

Originally Posted by hobo finds

Hopefully you time these increase in prices just in time for that cruise with your wife! Has to be getting close by now!

Only old timers remember that strategy and that includes the wife. She has decided to continue her career so she will get a longer cruise when the time comes. I do not consider this a hijacking of the thread since you started it.

Gas up here to $2.759 and sheet iron holding steady at $115 net ton or $.0575 lb. Hopefully no Summer Price drop for metal this year but we will wait and see....

I don't have a trailer or a vehicle with towbar & the local councils been pressuring me to clean up my (suburban) property..

So I organised someone on the "you get the first NZ$50.." bait.
He organises trailer, I have to put in $20 petrol cos its on 'E'.
We go pick up trailer & chat about how he's got it 2 days ago & did some work on it.
We joke about "loose wheel nuts", we each had a story to tell..
I check the wheel closest as a joke.
We load up scrapmetal, all clean sheet.
Drive there 5 mins, I decide the 'weird noise' should be investigated.ahh
To find one smoking tyre rubbing on the guard, and 4 loose wheel nuts, on the wheel I didn't check....
" Ah, hm". Find no wheel brace, but borrow one. Tighten nuts.
Unload scrap for 780kgs.
Get $34..@ NZ$50/Ton. (US$35...)

I kept the $4 & gave him the $30 (+$20 petrol)

Still laughing about it now.