Falling Scrap Iron prices

[Randy88]

Scrap prices are way down in my area as well, not sure where they are at now, but we hauled a bunch away a month ago at less than a 100 a ton, fence wire and posts they were paying around 60-80 a ton for, good stuff was still in that 110 a ton range.

I've also noticed new steel prices haven't fallen at all.

 

[norite]

I've also noticed new steel prices haven't fallen at all.

I apologize for changing the topic, but it's like that here with gas and diesel fuel. The world crude oil price has fallen by about 50% but retail prices maybe fell 10-15%, if that. Seems like we should be paying much less than what we are now.

 

[donkey doctor]

I apologize for changing the topic, but it's like that here with gas and diesel fuel. The world crude oil price has fallen by about 50% but retail prices maybe fell 10-15%, if that. Seems like we should be paying much less than what we are now.

Oil sells in US$ and look where our $ is in relation to it. 30% difference right now. Buy fuel with US$ and it is 30% cheaper plus the 10 to15% and it's getting down there. d.d.

 

[lantraxco]

Yeah, crude's what, $42 a barrel right now? Of course you have to keep in mind that spot price I believe is for delivery three months down the road, somebody correct me if I'm wrong. The other factor is the "blink", oil companies are playing a little Texas chicken right now, none of them want to reduce their sell prices any, and as long as nobody blinks and they all hold the line, retail prices will pretty much stay where they are.

 

[Old Doug]

I sure wish i had a crystal ball right now. I have been told the price of scrap is going to drop before long. I dont have time to haul any off but i have been hauling some in. I am going to get my stuff ready so if it gos up i can move it.

 

[clintm]

from what I've heard it's not expected to start going back up until sept of 2016

 

[lantraxco]

There is a lot of scuttlebutt around that China's economy is slowing a LOT faster than anyone is willing to admit right now, and since they're buying raw material to manufacture stuff to sell to us and the EU is driving commodity prices for the most part, it's likely that we will see mineral values dropping, including recycled metals and plastics. With oil dropping under $40 a barrel that may also effect things even more.

 

[fixou812]

Here's a scrapper nominated for Honorary HEF Member.
I'd try to post a link but I'm, still...on my phone.
Good for a laugh. It's on YouTube; how to lower your electric bill Oncore

 

[Old Doug]

They say it will be down to $10.00 a ton by the first of the year. As soon as a can i want to haul one load of shred stuff i realy dont want to store.

 

[CM1995]

They say it will be down to $10.00 a ton by the first of the year. As soon as a can i want to haul one load of shred stuff i realy dont want to store.

$10 a ton. That's cheaper than buying a ton of #57's at the quarry.

 

[Ronsii]

One of the big guys at the port here just went to $10 and charging for trucking for their commercial customers so it won't be long before the rest follow

 

[lantraxco]

Read an article that showed a fair percentage of the world's oil tanker fleet is either steaming at dead slow or swinging around their anchors, onshore tank farms are nearing capacity, the economies all over the world are slowing but the producers keep pumping trying to make up dollars lost due to the falling oil prices. We ain't even begun to see the effects. I'm no gloom and doom prophet but things are looking like hunker down and hold on tight time. We may soon see pre 70's crude oil prices and while it sounds good, what happened in the housing crash in '08 will look like a bad day at the office compared to the collapse of the oil markets.

 

[Nige]

Currently there are allegedly 3 billion barrels of oil in storage at various locations just waiting to be refined. The way world oil consumption has decreased recently that stockpile isn't going to go away any time soon.

 

[Scrub Puller]

Yair . . .

Folks seem to think the world is awash in cheap oil when, (at the moment) the world is awash with very expensive being produced at a loss . . . can't continue indefinitely, lantraxco is spot on.

Adjustments and corrections to come in the next few years and we are not going to like it.

Cheers.

 

[hetkind]

Cheap oil is good, far better than $5 gas in 08...

 

[Nige]

Cheap oil may not be as good as it sounds if it means that a large percentage of oil producers outside the Middle East go to the wall because their cost of production is more than they can get for selling a barrel of oil. Would you like control of world oil markets back in the hands of OPEC again like it was in the 1970s..?

And please don't moan about $5 gas. I currently pay $6.55 a gallon even with oil selling at below $50/barrel. At $100/barrel oil prices we were paying well over $8 a gallon.

 

[CM1995]

And please don't moan about $5 gas. I currently pay $6.55 a gallon even with oil selling at below $50/barrel. At $100/barrel oil prices we were paying well over $8 a gallon.

Nige the difference is the taxes you have to pay on that gallon compared to other countries with lower taxes on fuel.

 

[Nige]

CM, I realise that, but I get a burr under my saddle when people in the US complain about their "high" gas prices when the rest of the World pays more, whatever the reason ......

 

[hetkind]

OPEC is no longer a unified bloc...

 

[JBGASH]

CM, I realise that, but I get a burr under my saddle when people in the US complain about their "high" gas prices when the rest of the World pays more, whatever the reason ......

Nige, keep in mind 5-8 dollar per gallon gas will shut the US economy down. Along with US consumers many others from other countries would suffer greatly also. It is a shame that our / US economy is so tied to the world oil/energy supply. This last 4.00 per gallon fuel had ignited all types of alternative energy sources being developed and applied- basically I see the US rapidly being able to produce our own energy and being untied from abroad sources in the near future. The time frame will be dramatically quicker with high oil / energy prices.