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Mcprice302
Penny Collector Member
USA
404 Posts |
 Posted - 03/26/2010 : 13:22:14
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BSing around today, I went by the scrapyard to look for some parts and check prices. Can someone tell me what is driving these kind of prices? I wonder how long they will sustain?
Scrap- $9/100lbs
Short Steel - $10/100lbs
Cars- $10.75/100lbs
Batteries - $5 ea
Al wheels - $14 ea
#1 Copper - $2.80/lb
#2 Copper - $2.70/lb
Cu/Al radiators - $1.20/lb
I didn't think to check anything else and dont have much else. I had no idea things were this good again. I have never seen scrap bringing over $8/100 lbs before. I think I may have to get back in the junk car game again with these kind of opportunities. In fact, I think I'm going right now to a couple of places and see if I can make a deal with em . What are your thoughts on these prices? Do you think they will go higher or get to gettin while the gettins good ?
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Kurr
1000+ Penny Miser Member
2906 Posts |
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 03/26/2010 : 13:35:05
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Demand from the mills determines prices the scrap dealers will pay for any given metal. Not the prices from the metals exchanges. On occasion, scrap dealers will pay above the price listed on an exchange if the mills have a spike in demand.
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Mcprice302
Penny Collector Member
USA
404 Posts |
Posted - 03/26/2010 : 15:38:44
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quote:
Originally posted by Kurr
Locally car bodies are going for 210.00 a ton.
Don't forget to strip core parts, wiring harness', etc.
Always.
I couldn't make a deal with the people I had in mind yet, but 3/4 of them weren't even home yet. I'll try again sometime tommorow when everyone is off work. Whatever is driving these prices, I'm more than happy with them. What is everyone else seeing in their areas right now? |
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hobo finds
Penny Hoarding Member
838 Posts |
Posted - 03/26/2010 : 17:02:28
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Prices way up from a year ago here!
Paint Alum last year .29 this year .50
MLC last year .33 this year .52
Ins #2 wire .90 last year this year $1.05
Alumm Cans last year .35 this year .55
Stainless steel last year .35 this year .50
Steel last year .05 this year .075
Yellow Brass last year 1.20 this year 1.45
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Mcprice302
Penny Collector Member
USA
404 Posts |
Posted - 03/28/2010 : 08:49:24
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I was able to get a wrecked 92 Ford Explorer for $200 late yesterday and possibly 13 VW golfs, jettas, and rabbits to come. I made a $1200 offer on the VW's and the woman of the house would love nothing more than to see the cars gone, but the man could care less. We'll see if the woman gets her way in that family.
The explorer should do pretty well. If I remember right, they weigh around 4400lbs (V8, automatic), so that should be around $475 just in the body. Then theres also the 2 small mono convertors which are bringing $54 a piece at the moment, and of course radiator, starter, alternator, wirirng, battery, and the like. It has steel wheels unfortunately. Still, it should be an easy $400 profit as soon as the rain clears (again ) and I can get the sawsall out.
In other news, cans are bringing 70cents/lb. right now! |
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double dot
Penny Sorter Member
USA
55 Posts |
Posted - 04/01/2010 : 09:45:20
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"Can someone tell me what is driving these kind of prices?"
Supply may be driving these prices. Two years ago it was common to drive around and find old steel appliances - stoves, washers, driers, even microwaves in the trash for weekly pickup. Then the home equity funded appliance upgrades were just starting to end. Last year saw the lag in disposal of of the old appliances. This year it seems dead for finding scrap.
People don't buy replacements or they fix or buy used appliances in lieu of new purchases. Even if purchases start later in this recovery, there will be a lag before scrap steel or "tin" as they call it here supply picks up. That is if we have a recovery anytime soon.
My primary scrap yard is empty. The prices go up but are failing to attract supply. Maybe a govt cash for (appliance) clunker program may temporarily increase supply and reduce prices but not happening right now. |
Crouching Teller, Hiding Copper |
Edited by - double dot on 04/01/2010 09:47:08 |
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CrazyTom
Penny Sorter Member
USA
52 Posts |
Posted - 04/03/2010 : 11:01:19
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| I would bet that commodities inflation is well underway. Just like the rise in gold and silver..... |
Read Atlas Shrugged if you want to know why this country is in the crapper. |
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Market Harmony
1000+ Penny Miser Member
USA
1274 Posts |
Posted - 04/03/2010 : 11:57:52
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It's an interesting topic... scrap yards being empty during a time of high commodity prices. Oddly enough, scrap yards are hurting during this time, and it has nothing to do with the price of commodities.
The cold hard facts are that 80-90% of the business at the scrap yard is b2b. It's not the public that brings in the majority of scrap metal, but businesses. The manufacturing process is the biggest generator of scrap. If the manufacturing sector of the economy is down, then scrap generation is down, and scrap yards do less business. Lower cash flow means lower profits, and this trickles down to hard times for the scrap yards.
This is the reason that you see empty scrap yards... they have to sell the scrap they bought yesterday to cover overhead needs of the business today. There is a cash flow lag. Once manufacturing picks up again, then scrap yard inventory will increase. Thinking about this some more will tell us why the prices will continue to increase.
There is a shortage of scrap due to the decline of manufacturing. But in order for manufacturing to get back on track, they need to increase their production. To do this, they need to stock up on raw material inventory (sheet metal, fasteners, wiring, etc). This raw material for the manufacturers requires foundries to produce the refined metals. This requires the input of scrap metals into the foundries. But there is less available supply of scrap metal because it has been shipped off to China. So, foundries have to pay top dollar for their raw material, they pass this cost onto the manufacturer, the manufacturer passes this cost onto the consumer. You now can see how commodity price inflation rolls in.
As consumer prices rise (faster than wages) then consumers will either not buy goods, or will find substitutes. This means fewer sales for manufacturers, which means less production, which means less scrap produced, which means raw material prices will continue to rise. It's an ugly cycle of decay.
The metal recycling business offers a fascinating insight to the state of the economy.
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goto the new and improved realcent: http://realcent.org |
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 04/05/2010 : 09:11:21
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You're seeing empty scrap yards because scrap yards, like us, are speculators and buy low and sell high. Yards will stockpile material to capacity when prices are low. When the price spikes, they clean out the yard to maximize profits. They will not be stockpiling when prices are high. It would be unwise to do otherwise.
As long as the mills are paying top dollar for the scrap, the yards will pass the better price on to their customers, because they want the business.
Seeing as how almost everything sold in the U.S. is made in China these days. Even the steel used by what U.S. manufacturers that are still left is made in China. It would make sense that China is buying the scrap...
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Edited by - Bluegill on 04/05/2010 09:12:12 |
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scrapman1077
Penny Sorter Member
USA
79 Posts |
Posted - 04/12/2010 : 15:37:10
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| The scrap yard I use here In Northeast Alabama is a feeder yard for a much larger operation just north of us,I watched today as they ripped up 18 wheeler boxes and just tossed the al along with the steel into the pile. They ship it all to the big yard that has a new shredder, everything goes thru the shredder and is separated after. They no longer pay anything extra for prepared steel. |
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cptindy
Penny Hoarding Member
572 Posts |
Posted - 04/12/2010 : 22:27:52
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I agree that scrap metal allows a clear view of the market.Having watched and been involved in the business at different degrees it has allowed me to understand with much clarity the state of the economy.
It is very true that scrap yards hoard metal waiting for spikes. I was in a very close relation with a manger in Detroit which allowed a keen insight. Yards have different capabilities and functions in which they specialize. If their relations do not provide in house capability our a parent company with such they will not pay a premium for specific metals. There are also a lot of hand shake deals among yards. It is a very interesting field. |
"It is the nature of the human species to reject what is true but unpleasant and to embrace what is obviously false but comforting"
" The average man doesn't want to be free. He wants to be safe."
H.L. Mencken
http://silver-news-today.com/ |
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