Current State of Scrap Prices February 2009

Scrap Prices,

particularly scrap aluminum prices had the bottom drop out in the past 2 months.

They say pictures tell a thousand words, these two that I took tell a story of more than 50% drop right here in Frederick Maryland: (I learned more about how to use my fancy camera too!)

Before:

picture taken September 19, 2009

After:

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picture taken January 30, 2009

To their credit the scrap recycling centers are not even sure they are going to be able to sell what they buy this month. We shall see what the stimulus package does in the way of helping.

I've been focusing on aluminum primarily because to scrap steel requires a heavier truck and stronger back. I killed two pick up trucks over the past 15 years- the wieght tends to wear out the brake rotors even if they suspension can handle the load. You've really got to have a 3/4 ton or higher and a trailer if you're going to earn honest money on the side in this business.

I'll include this next reblog to cover the news on steel prices as well.

U.S. scrap and pig iron prices continued to drop.
Current scrap price on East Coast hit US$230 ~ 240/ton, shredded scrap price at US$220~230/ton, while H1 scrap price reached US$195~205/ ton.As for the export, because of weak demand in steel products and the cut of steel output, scrap export prices were also very low. The H1&H2 (80:20) mixed scrap exported to Turkey priced at CFR US$265/ton, down by US$15/ton compared with January.

In addition, the price of pig iron exported to Brazil dropped back to US$260/ton.

http://scrapmetalpricesandauctions.com/2009/02/us-scrap-metal-pig-iron-prices-continue-slide/

Alcoa lay offs translate to low scrap prices

It looks like the bottom has dropped out of demand for Aluminum.

Alcoa to lay off 13,500 workers, freeze salaries and cut spending by 50%

PITTSBURGH — Aluminum producer Alcoa Inc. said Tuesday it will cut 13,500 jobs, or 13 per cent of its work force, and slash spending and output to cope with the global economic slowdown.

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The Pittsburgh-based company also said 1,700 contractors will be cut as part of a broad-based plan to reduce costs that includes a global salary and hiring freeze.

As a result of its actions, Alcoa expects fourth-quarter charges of between $900-million (U.S.) and $950-million. The company plans to report quarterly results Jan. 12. Alcoa also said the moves are expected to save the company about $450-million annually, before taxes.

“These are extraordinary times, requiring speed and decisiveness to address the current economic downturn,” said Klaus Kleinfeld, Alcoa's president and chief executive officer.

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Looking like we should be focusing on copper and that means scouting the plumbing companies. And that means looking for industrial parks.

The downside of scraping a heater core is releasing fluorocarbons into the atmosphere. There are stiff fines for doing this, it is illegal for a reason.