18 years ago
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
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
All these years of buying third world crap at unbelieveably low prices has a
This is the cost.
The Chinese economy is so strong, they don't have enough resources to keep