Scrap Price Crashing?

SND · Jul 15, 2022

Just wondering what you guys are seeing for scrap prices vs material prices.

In April I got as high as $1.20/lb (CAD) for 316 Turnings.
Called a month ago and was told its down to $0.50/lb, called a minute ago, $0.15/lb.... lower than in the march 2020 crash...
Meanwhile all the material I'm getting prices on is still going up, about $8/lb(CAD) average for 316.

Usually scrap going way down isn't a good sign for the economy in a few months, so are you guys seeing this everywhere or is it just me?

DanASM · Jul 15, 2022

I saw them not paying for steel turnings anymore at the beginning of this month. I got $190 /Ton 2 months back.

Ox · Jul 15, 2022

Our scrap check from last month was 1/2 for the same thing ... maybe 3 months prior.
That is for steel and alum chips.

IDK if they paid for the steel or not - per Dan.
I just know that they picked up a 12yard of steel, and a 12yard of alum, and the check was 1/2.

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Think Snow Eh!
Ox

cnctoolcat · Jul 16, 2022

Like said, carbon steel turnings are practically worthless right now. Our scrapper was nice and gave us $5 per ton for 9 tons of fine chips.

We were getting $150+ per ton a few months back...then 50, then now and bam!

Yet steel prices are still facing upward headwinds every time we order...

ToolCat

Richard King · Jul 16, 2022

When Obama was president, years ago the scrap-yards here in Minneapolis, MN were bought by Russian and Chinese companies. (Governments) around the USA too. To drive down scrap prices round the globe so they could sell their new steel . Why the USA government allowed this is beyond belief

Ox · Jul 16, 2022

Well, IDK how well that is working for them, but the steel mills around here have been buying up the scrap yards in recent years.

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Think Snow Eh!
Ox

latheman78 · Jul 16, 2022

I notice solids off just of maybe 10% from a couple months ago. The market for turnings has always seemed to be more volatile at the places I have used. Often they will start and stop taking them.

dalmatiangirl61 · Jul 16, 2022

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 :eek:

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

latheman78 · Jul 16, 2022

dalmatiangirl61 said:
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.

Yikes, was that pallet an odd shape or fragile with a high insurance cost?

dalmatiangirl61 · Jul 16, 2022

latheman78 said:
Yikes, was that pallet an odd shape or fragile with a high insurance cost?

Just some type of pelletizer, friend called me for advice and I just walked him thru the online quote system. It is possible he did something wrong, but I had already warned him it was going to be insane, I was getting quotes on a similar sized load 2 months ago, SoCal. to Northern Nevada, they ranged from $800 to $1600 :nutter:

snowman · Jul 17, 2022

It's global commodity prices. Copper is down 30% from two months ago or so. Everything follows. We are heading into a recession.

latheman78 · Jul 17, 2022

From 2-3 months ago when I wrote down prices, getting close to a scrap run. Since then prices are:
Copper -20%
Brass-15%
Al-15%
Stainless-50%
Junk Steel-20%

This is the exact same yard I checked last time, the only turnings they are currently taking are dry aluminum at 25 cents a pound. Shocked that stainless solids went from $.50 down to $.25 a pound. At least I don't have a lot of scrap. I have some of all the above, probably around a half ton at most.

ncjeeper · Jul 17, 2022

I have not checked lately. But from you guys are saying I wouldn't even make enough to pay the gas to drive the scrap there.

Phil in Montana · Jul 17, 2022

Light steel mix 120/ton Missoula mt, was 210/ton 60 days ago...Phil

john.k · Jul 18, 2022

Its not so much copper is down,but the US dollar is soaring..........from where you look ,stuff is going down,but from outside the bubble ,non ferrous scrap prices are stationary............however ,steel has fallen in a hole,due to expectations the Chinese construction sector is also fallen in a hole.......iron ore ex Pilbara is down 2/3 since 18 months ago,and about to sub US$100/.ton

john.k · Jul 18, 2022

See a report Oz coal (US$value) exports exceed iron ore for the first time in many years ,for June 2022........

GermanOkie · Jul 21, 2022

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.

john.k · Jul 21, 2022

I have been thru six cycles in scrap steel prices ......caught the last one at $400 /ton,and in my time I have seen steel scrap so low that the yards wouldnt unload with their own cranes .....about 50 cents a ton......that was the 80s recession.....that was the time I got the Railways Contract ..500 ton of machines for $500 ......Simsmetal put in stupid prices of a few cents per machine...............The 2012 Scrap craziness also peaked at $400 /ton,but the price crashed overnight ,leaving the big yards with millions in losses.............the biggest change here would be the tax dept getting into the act about 20 years ago.

BT Fabrication · Jul 25, 2022

SND said:
Just wondering what you guys are seeing for scrap prices vs material prices.

In April I got as high as $1.20/lb (CAD) for 316 Turnings.
Called a month ago and was told its down to $0.50/lb, called a minute ago, $0.15/lb.... lower than in the march 2020 crash...
Meanwhile all the material I'm getting prices on is still going up, about $8/lb(CAD) average for 316.

Usually scrap going way down isn't a good sign for the economy in a few months, so are you guys seeing this everywhere or is it just me?

Locally says in ontario $0.82 cdn per lb 316 turnings. $0.92 for solid.
even shred steel is down. from $270 per ton to $180

red beard · Aug 12, 2022

Yesterday I took in 1100 lbs. of 316ss turnings. I got $0.80/lb. That's lower than the $1.05/lb I got for it 6 months ago, but the same price as May 2021. I'm not complaining, I've seen it much lower.

Scrap Price Crashing?

Diamond

Hot Rolled

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Cast Iron

Stainless

Diamond

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Aluminum

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Stainless

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