Raw material market

Metal related content, honest.

I have posted to this group in the past.

I do all of the purchasing for our 3-man job shop in Washington, PA. I have done so for at least 12 years. There has been much talk recently of the sudden and vioent spike in scrap steel pricing. The persistent rumour is that the Chinese have increased their steel production way beyond the point of their own supply of scrap steel, and have been buying all the steel they can get their hands on. Every local scrap dealer is selling off their inventory. One of my local suppliers informed me that they have spent days cleaning up their scrap area, because he was getting paid US$23/ton for #1 prepared steel plate scrap.

I can't ever remember getting more than US$.02/pound for our heavy scrap. For the last four years, I have been giving away my scrap to a local guy with a ratty pickup who feeds his family from the proceeds of his travels. It just was cheaper for me to not have to beat up my own truck and spend the time on the trip to the scrapyard.

Ok, that's enough background. I haven't had to make any significant metal purchases in the past month. I had an inventory built up that served our needs for current orders. People in our business told me about material vendor quotes only being valid for 48 hours. Last week, I called for pricing on 1000 feet of aluminum tubing, and the sales rep informed that due to volatility of the material market, the quote was only good for 24 hours.

Chew on that a bit.

When a cutomer asks me for a quote on a job, am I to tell then that the price is only good for something less than 24 hours?

There's your "global market" at work.

I have been been preaching for years the importance of buying domestic goods.

All these years of buying third world crap at unbelieveably low prices has a cost.

This is the cost.

The Chinese economy is so strong, they don't have enough resources to keep up.

Reply to
Jon Grimm
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Now the guy is picking up scrap in a new Hemi duely and has a crew to load it.

Reply to
Tom Gardner

$23 a ton is just over a penny a pound. 2 cents a pound works out to $40 a ton.

How much are the scrap dealers getting? I cannot see them working too hard for $23 a ton.

Cheers Trevor Jones

Reply to
Trevor Jones

Reply to
The Masked Marvel

my mistake, yeah, $230/ton

the point of the whole story may have been missed, tho

Reply to
Jon Grimm

My salvage buddy told me last week that he was buying steel at $45 a ton, and selling it for $70 a ton. #1 copper is bringing from 95 cents to a $1.50 a pound locally. Another local salvage yard has shut out walk-in customers except those selling, and has brought in a special contract crew to purge the yard for quick cash. New steel tubing prices have gone up 30% if in stock, but 45% if the supplier has to order it from the mill. Wait till things have had time to really trickle down......Things like US made auto lifts and such will be sky high. Steel building prices were only good for a couple of weeks, last I checked a month ago.

RJ

Reply to
Backlash

The joys of a free market :-|

Our works buyers complain about paying £10,000/ton for steel and only getting £1000/ton for the scrap. But then, that's for some interesting alloys.

Mark Rand RTFM

Reply to
Mark Rand

I just got rid of 50,000lbs of scrap steel. I got $130/Ton for long stuff and $160/Ton for the shorts and punchings.

I think the US steel companies are pissed Bush took the tariffs off. They are getting unreal surcharges now. I think the days of the 25 to 30 cents per pound steel are gone and never to be seen again. It won't surprise me to pay a buck a pound for hotrolled before this settles down.

You have to remember that most our mills use scrap for production also. They don't like paying high prices for it either. So they don't buy as much meaning less output leading to demand outstripping supply. That means prices are going to rise.

Yeah, it sucks to tell a customer that their quote is good for 24 hours and tied directly to the price and availability of the material.

Les

Reply to
Ljwebb11

We are getting $180 a tonne for punchings and bar ends of mild steel.On the other hand it`s costing $900 soon to be $990 for BMS,and there`s talk of another $160 a tonne soon.The most annoying bit is that hot rolled black bar is now more expensive than bright I was getting quoted $1130 for 2"sq the other day.We have one major customer with over a thousand part numbers on the computer and I have to re-price every order as it comes in.As Les says the good old days are gone and I don`t think they will come back. Regards,Mark.

Reply to
Mark McGrath

My bad, those figures I quoted I my previous post should have been per thousand pounds. Sorry

RJ

Reply to
Backlash

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