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View Full Version : $252 Dollars a Pound??



madman
01-08-2009, 01:55 PM
How do you do work for people when steel companies can charge this price (not even taxes on it yet??) for stainless steel 4 inch schedule 80 pipe? Im amazed. Its getting tougher to do small jobs and quote succesfully in the small home shop.

lazlo
01-08-2009, 01:59 PM
Steel prices crashed last Summer. The problem is that the local distributors have a lot of stock at the "old" prices, so they want to sell based on the peak prices from last year.

Tinkerer
01-08-2009, 02:47 PM
That's true... but on the flip side when steel prices ramped up they tagged the cheaper steel they had in stock with the "New Higher Replacment" cost. We buyers just can't get a break.


Steel prices crashed last Summer. The problem is that the local distributors have a lot of stock at the "old" prices, so they want to sell based on the peak prices from last year.

ckelloug
01-08-2009, 02:56 PM
Material Prices are Scary. You should see the alumina grinding beads I initially wanted for epoxy granite. They looked great until I found out that they only make 30 lbs per month and that they are $500 per pound!

jkilroy
01-08-2009, 03:16 PM
Thats a freaking rip off, I think onlinemetals.com could beat that price.

Fasttrack
01-08-2009, 03:24 PM
Just a FYI:

Stainless steel is going to remain pretty costly. Although most metal prices dropped significantly, nickel is still on the rise. I just read an article about the soaring price of nickel. The LME has nickel at $12,510 per ton

Still, that seems pretty outrageous for SS pipe!

The Fixer
01-08-2009, 03:33 PM
Hmmm I recently bought a 12" piece of 4" SS pipe sch 80 from our crop shop here for $80 inc txs, so perhaps u should shop around a bit. Either that or ask him to remove his balaclava so you can see his face when you fork over your wallet!!

kenrinc
01-08-2009, 03:45 PM
I raid my local dealer cutoffs at $1 lb for steel. $3 lb for Ai. I just got a quote for an 8" x 8" piece of 1/2" T6 plate at $65 which I thought was a bit excessive considering I bought the same piece previously for less than $20... They want to sell that stock that cost so much last year.

Ken-

madman
01-08-2009, 05:52 PM
I spoke to the Kitchener Steel Guy who gave me the **** prices. I told him i didnt want him to ever call me he got my number from metal unlimited in london and the kitchener steel guy told me he has this area and all have to go through huim. I laughed and said just like the mafia EH?? Then i reminded him how much steel I USED to buy from him with my successful construction business i used to manufacture and said i got jerked around by you guys so bad i just went to youre suppliers and got it way cheaper without the extra touch of Bull**** you seem to thricve on. Basically im pissed off. Anyhow more new quotes and i think some pricing wii change drastically for me and my customers. Next day or two will tell. You really got to know where to go. Thanx all Yup 250 plus fior piece of pipe wow./

lazlo
01-08-2009, 06:37 PM
That's true... but on the flip side when steel prices ramped up they tagged the cheaper steel they had in stock with the "New Higher Replacment" cost. We buyers just can't get a break.

That's why the scrapyard owners are being jackasses about scrap prices -- they were buying sh!t up left and right during the steel boom, but thought that trend was permanent, and got stuck with their pants around their ankles when the bottom dropped out of the market.

Hence the penny a pound some of the scrapyards are offering for steel.

motorworks
01-08-2009, 06:56 PM
Prices are high

Just paid $2800.00 for 29" of 3" x 7" sae 660 bronze!
And I still had to machine it!! |)

tattoomike68
01-08-2009, 07:15 PM
No free lunch. about the only cheap stainless you will find is in the scrap yard, Tube, pipe, rounds,sheet. Even then you need a friend.

here in the pacific northwest canneries have closed up and have been torn down so there is coveyor belts, pipes, shafts and all kinds of parts from food processing going back to be re-melted or recycled.

You can save a bundle by buying metal that will do the job that will be recycled. even if you have to change the plans.

welcome to 2009.

Luke55
01-08-2009, 07:36 PM
General bearing want to charge me 65$ this afternoon for a roll of steel shim 6X50 in .002
cost 28.35 shipping +tax incl. from Travers canada

CCWKen
01-08-2009, 09:53 PM
There's a shortage on pipe. All the terrorist are buying it up to make bombs and rockets. :D :rolleyes: Sorry, couldn't resist.

Your Old Dog
01-08-2009, 09:58 PM
That's true... but on the flip side when steel prices ramped up they tagged the cheaper steel they had in stock with the "New Higher Replacment" cost. We buyers just can't get a break.

I heard it said that that is the correct way to run a business. For some reason, going the other way isn't. Therefore, everytime there are price increases the suppliers make out like bandits.

wierdscience
01-08-2009, 10:02 PM
There's a shortage on pipe. All the terrorist are buying it up to make bombs and rockets. :D :rolleyes: Sorry, couldn't resist.

I was going to say those Iranian reactors don't build themselves:D

lazlo
01-08-2009, 10:07 PM
Therefore, everytime there are price increases the suppliers make out like bandits.

They're not now! The metal suppliers are wallowing in expensive steel stock, while cheaper stock (post Summer price crash) is flooding onto the market.

MickeyD and I went to Lamar Steel in Georgetown last week, and when I balked at a price they quoted me on some 4" steel tubing, they immediately dropped the price by $10.

I think now, more than ever, you need to shop around a bit: whichever supplier is the first to re-price their stock according to the latest spot prices is going to lead the material prices back down to normal.

But stock up before the end of the recession: once the worldwide economy starts to recover in late 2009, early 2010, material prices (and oil/gas prices) are going to skyrocket again!

wierdscience
01-08-2009, 10:14 PM
I heard it said that that is the correct way to run a business. For some reason, going the other way isn't. Therefore, everytime there are price increases the suppliers make out like bandits.

Since I work for a supplier of sorts I can say without a blink that is the way it must be done.

This past summer we were ordering in #10,000lb loads of mixed crossections for our own use and stocks to sell.

When you buy in 10,000lbs at $.65/lb and sell it for $1.30/lb one month and PAY $1.35/lb the following month for the next order it doesn't take long to figure out that system isn't going to work.

So in addition to the $500 shortfall,that steel didn't walk from the truck to the rack and I still haven't found a source for free bandsaw blades and coolant:(

As a result of that fiasco our markup went to 2.59 instead of 2.00 because we HAD to have a cushion so MAYBE we could at least break even.

Now that demand has dropped to nothing all that high priced steel will be sticking around on the racks for a long time.It doesn't rot,bugs don't eat it and there is no expiration date.No sense losing anymore money.

wierdscience
01-08-2009, 10:19 PM
But stock up before the end of the recession: once the worldwide economy starts to recover in late 2009, early 2010, material prices (and oil/gas prices) are going to skyrocket again!

You mean inflation right?

oldtiffie
01-08-2009, 10:26 PM
Grizzle all you like but you are on the thin end of the stick and so you won't change anything.

You have two options: pay up or go without.

lazlo
01-08-2009, 10:31 PM
You mean inflation right?

No, I mean supply and demand. China was consuming every scrap of iron and steel from 2005 up to the Olympics, so combined with a healthy global economy, demand drove steel prices up.

Now that the worldwide economy is in a deep recession, nobody's building anything (including cars) so worldwide demand for steel (and oil) is very low, and steel prices are in free-fall.

Once the steel supplier re-set their prices to last Summer's crash (and prices have already dropped by about 25% since the peak early last Summer) it would be a good time to stock up on material.

lazlo
01-08-2009, 10:36 PM
When you buy in 10,000lbs at $.65/lb and sell it for $1.30/lb one month and PAY $1.35/lb the following month for the next order it doesn't take long to figure out that system isn't going to work.

Now that demand has dropped to nothing all that high priced steel will be sticking around on the racks for a long time.It doesn't rot,bugs don't eat it and there is no expiration date.No sense losing anymore money.

The problem with that business strategy is if your competitor across town has sold off his expensive stock of steel, and is selling fresh supplies at the current (much lower) spot prices, then he's going to seriously undercut you.

Are customers going to pay $2/lb for steel at the supplier who hoarded steel when it was expensive, or $1.30/lb for the same steel at the supplier across town who managed his inventories better?

wierdscience
01-08-2009, 11:02 PM
Are customers going to pay $2/lb for steel at the supplier who hoarded steel when it was expensive, or $1.30/lb for the same steel at the supplier across town who managed his inventories better?

No,that's why we stopped buying local and started buying from Mexico in much larger lots last summer.Our old suppliers wholesale is now higher than our retail and they aren't backing off.They called today asking when we might be placing an order,desperation has set in.

It doesn't matter though,not much is being built anywhere and won't be for awhile.Added to that scrap is already heading back up,the dip in prices won't be deep and it won't last long.

dave727
01-08-2009, 11:22 PM
I paid 68 cents a lb yesterday for some mild steel flat stock at SSS Houston. I have a cash account in my name there, used to have a small business. I noticed at triple S that walk in cash customers get the crap price. So I had my old business account changed to my name. Dave

lazlo
01-09-2009, 01:57 AM
.Our old suppliers wholesale is now higher than our retail and they aren't backing off.They called today asking when we might be placing an order,desperation has set in.

So they're trying to sell steel to a retailer for a lot more than the spot price, and they don't understand why no one's buying??? And they're still in business? :)


Added to that scrap is already heading back up,the dip in prices won't be deep and it won't last long.

According to most economists, the recession is going to get much worse before it starts getting better. All projections are that steel and oil prices will continue to free-fall.

oldtiffie
01-09-2009, 03:09 AM
I seem to recall a lot here buying "on the way up" - "just in case" when prices were rising not so long ago. I wonder if they got their fingers burned then.

I just buy what I want when I want it. I treat "metal" as a "consumable" and not as an "investment" or "commodity". To me it has no intrinsic value.

I can't see the point of having that capital "tied up" until I want to "use it". It would be worse if I had get get finance for something that I could have paid cash for if I hadn't tied it up in that "just in case" pile.

The "ups" and "downs" pretty well pan out over time.

Tripping over or trying to cram in lots of "stuff" is a risk and a PITA that I can well do without.