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Randolph
03-12-2004, 09:39 AM
I saw in a previous thread, don't remember which, some comments on the prices of scrap steel.

I have a friend who owns a junk yard (sometimes he is a really GOOD friend when I need something) and he told me that scrap prices for No. 1 steel scrap is now the highest he has ever seen it. He sold a little over 30,000 pounds last week for $6.25/100 pounds. Or 6-1/2 cents a pound.
No. 1 scrap is defined as steel ready for the electric furnace and cut into pieces no longer than 36" or bigger than 18" in width or height.

Car bodies are now bringing a little over $3.00/100 pounds with the upholstry and tires removed and the gas tank emptied and cut open.

Does anybody know where this steel is going? What do you want to bet it is going to China?

abn
03-12-2004, 10:56 AM
I better get to the pick and pull yard this week before they scrap all my car parts!

Cass
03-12-2004, 12:21 PM
Bush put a tariff on foreign steel which raised the price of steel. Then the Fed has been letting the value of the dollar fall which is a much more effective trade barrier because it makes US exports cheap vs imports. The steel tariff was the short term immediate treatment and the drop in the value of the dollar is the longer term. The tariff was removed but the price of foreign steel is still high. That increases demand for scrap here to supply the local demand as more stuff gets built and exported since it is now cheaper to buy in foreign countries. The US steel companies have been cutting capacity for years as the midwest rust belt manufacturing sector has been in recession for a long time so they have now have a shortage in capacity. Shortage of supply and increase in demand at the same time drive prices unusually high. It won't last so sell your scrap metal now, that is certainly what I am doing. I have several thousands of lb. of aluminum and copper that is going out in the next week or so. China is on the dollar value system so their stuff is not as expensive as European products for sale in the US. Bush is negotiating with them to raise the value of their currency or face some tariffs. The Japanese did it to us for decades by keeping the yen super low in relation to the dollar. This action of keeping the dollar cheap helps manufacturing and jobs in the US but increases the trade surplus problem as everything we import such as oil is now higher in price as you will notice at the gas pump. No free lunch as the demogogues would have you believe but I am happy to see some real help for the manufacturing sector for a change. Very tricky to know when to raise interest rates and therefore the value of the dollar back to normal. Too soon is bad but too late gets trouble with inflation and other problems. Bottom line: sell scrap now.

x39
03-12-2004, 09:02 PM
I was told No.1 scrap steel is currently $150.00/ton here in Maine.

wierdscience
03-13-2004, 10:59 PM
Its running $120.00 here,but remember the magic month is June,Imports will hit the docks and the demand for scrap will fall slightly,hold for awhile then sell.