Scrap Price Crashing?

[SND]

I got only $0.27/lb(CAD) last week, I'm starting to think there's some new people at this yard screwing people around.

 

[Big B]

Scrap steel $160/Gross ton here in Michigan today.

 

[red beard]

Yeah that doesn't

I got only $0.27/lb(CAD) last week, I'm starting to think there's some new people at this yard screwing people around.

Yeah, that doesn't really sound right. I know prices can vary in different regions, but that's an awfully big difference.
The guy at the front desk of the scrap yard was surprised at the price I got. Most people were getting $0.76/lb, but I've been taking 316ss turnings there for many years and apparently my turnings are especially clean so they give me a few more cents per pound. But $0.76/lb (USD) is still way more than your .27/lb(CAD) (or $0.21USD).

 

[latheman78]

Stainless various wildly where I am at, solids are down to 20 cents a pound, while aluminum solids are 50 cents. Stainless solids were 65 cents a month or so ago.

 

[newtonsapple]

Maybe due to the cost of transportation? Friend got a quote from Fedex freight this past week for $2300 for 1 pallet 300lbs, NYC to central Tx

Edit: high transportation costs would drive scrap prices down, especially turnings, and drive cost up of new material.

Something is up with that or the actual pickup/drop off are way far from a terminal. Fedex and UPS retail rates are crazy high for unless you have an account with a discount. The discounts are easy to get through a number of affiliate programs or just asking. Maybe they do the same thing on the freight side with wildly inflated retail prices. My discounts are all 40-70% off and I ship maybe 10-20 packages a year on those accounts.

Check Uship as well for pricing. Freight quote also hands out a lot of $50 off coupons.

 

[SeymourDumore]

Something is up with that or the actual pickup/drop off are way far from a terminal.

You are absolutely correct about the discounts with having an account, but to humor yourself, change that Syracuse pickup location to a NYC and see what happens!
NY Metro is friggin' retarded, specially when the union-mandate kicks in!

As far as scrap prices, I'm glad to have unloaded my Inco solids a while back, along with some #6000 of AL solids....
Will have a pickup here next week so I can compare the rates from late may to today ...

 

[newtonsapple]

You are absolutely correct about the discounts with having an account, but to humor yourself, change that Syracuse pickup location to a NYC and see what happens!
NY Metro is friggin' retarded, specially when the union-mandate kicks in!

Changed it ship from: New York, NY 10005 and it isn't too bad

Lowest three prices:
1: $458
2: $559
3: $649

 

[dana gear]

I am located in the flat ass crazy state of California. Our governor will probably declare scrap a hazardous waste before long and want us to have it trucked (Electric truck of course) to a haz mat site. Oh and pay thousands to get rid of it. County safety inspector cruised through recently, even looked at our bath rooms, I guess seat belts on the toilet are next.

 

[Freedommachine]

The Philly Fed Manufacturing Outlook crashed. It was at like 70 2--3 months ago. It is now negative 20. I am pretty sure it will hit us hard it is just a matter of time. View attachment 369454

What does this chart represent? "General Activity Indexes" is clear as mud to me.

 

[john.k]

I have noticed the last coupla weeks large quantities of (Chinese?) steel beams and plate at auction houses and in the bigger scrapyards (for resale)......this was the sale method used when the market was flooded with import steel a few years ago.

 

[dalmatiangirl61]

Something is up with that or the actual pickup/drop off are way far from a terminal. Fedex and UPS retail rates are crazy high for unless you have an account with a discount. The discounts are easy to get through a number of affiliate programs or just asking. Maybe they do the same thing on the freight side with wildly inflated retail prices. My discounts are all 40-70% off and I ship maybe 10-20 packages a year on those accounts.

Check Uship as well for pricing. Freight quote also hands out a lot of $50 off coupons.

View attachment 371367

He does not have an account, and has never had to setup shipping, that is why I had to walk him thru the process. I was trying to setup shipping in the spring for 4- 16" grinding wheels, SoCal to Nevada, could not get a quote under $800 on uship.

 

[JoeE.]

This is a little place in northeast Oklahoma.

 

[Big B]

I am located in the flat ass crazy state of California. Our governor will probably declare scrap a hazardous waste before long and want us to have it trucked (Electric truck of course) to a haz mat site. Oh and pay thousands to get rid of it. County safety inspector cruised through recently, even looked at our bath rooms, I guess seat belts on the toilet are next.

What are you going to have to do/spend money on as a result of their visit?

 

[john.k]

Not surprised if scrap is a hazardous waste.......the scrappies I deal with now are kosher with the regs,but go back to 1990,and there was always a stack of big transformers on the footpath outside draining chlorinated transformer oil into the gutter.........the guys I sold out to had a swimming pool sized waste pit full of motor oil,brake fluid,coolant ,that was complained about by the guy down the back,two women inspectors came from the Council........wernt allowed on the site because they wernt wearing burkas .......and the Council copped it ,cultural sensitivity ,or some crap..........anyway ,he is a nice guy,I sold out to him,and say good luck with the Council.........I recall the Vietnamese had a free run with the Council for years and years,then suddenly the Council is down on them like a ton of bricks....they are getting $ million fines ,and jail terms for EPA crimes..........and that will happen with the Afgans too.

 

[dana gear]

What are you going to have to do/spend money on as a result of their visit?

You always have to pay money when they visit, about 1,200 a year, it's a scam for the county to make extra money. basically, check that our employee escape routes are clearly marked. That we maintain a first aid system , fire extinguishers and compressed gas storage. There's another team of crooks that check our air compressors.
Oh, and don't forget the OSHA boys. Even our insurance carrier gets on the tour bus.

 

[Big B]

You always have to pay money when they visit, about 1,200 a year, it's a scam for the county to make extra money. basically, check that our employee escape routes are clearly marked. That we maintain a first aid system , fire extinguishers and compressed gas storage. There's another team of crooks that check our air compressors.
Oh, and don't forget the OSHA boys. Even our insurance carrier gets on the tour bus.

Why do you stay in California if it's so bad there?

 

[kustomizer]

Why do you stay in California if it's so bad there?

Moving to another state is a big job, but by God it was worth it.

 

[Ox]

What on Earth does OSHA have to doo with air compressors?

How many employees doo you have?

Any history of claims?


---------------------

Think Snow Eh!
Ox

 

[kustomizer]

What on Earth does OSHA have to doo with air compressors?

How many employees doo you have?

Any history of claims?


---------------------

Think Snow Eh!
Ox

Cal-Osha requires an annual pressure vessel test, they never did bill us for it but would send someone out to test for thin spots up to the point we got rid of the last employee a few years back, if you have one on your payroll you are required.

 

[latheman78]

I am located in the flat ass crazy state of California. Our governor will probably declare scrap a hazardous waste before long and want us to have it trucked (Electric truck of course) to a haz mat site. Oh and pay thousands to get rid of it. County safety inspector cruised through recently, even looked at our bath rooms, I guess seat belts on the toilet are next.

Maybe you should move off the beaten path, sometimes just getting outside the city proper
makes a world of difference. The great thing about California is no two areas are the same.
Maybe try somewhere in SoCal Northeast of 29 Palms a ways down Amboy Road, it used to be you could drive for an hour and not see another car. There is power there but no water, but you could probably buy an old homestead site with water tower already on it.
They probably went in the bathroom to see if you had some chemicals on a shelf you were not supposed to have. I knew a guy that got warned for that. People that don't know some of the regulation some places in Cali has would think you are full of it. Just because you can buy it at Home Depot doesn't mean you can have it in a manufacturing facility or repair shop.