April 15, 2017
To The Loyal Customers of Kimmel Scrap Iron & Metal
As I am writing this newsletter we are experienced increased tension between our Government and country of Syria. We all wish safety for our soldiers and civilians who protect us and our freedoms. How do moments of uncertainty affect our industry and our customers and scrap metal prices? In the past, I remember seeing larger spot movements based on political tensions and thoughts of military aggression. Using today’s technology of instant information and connectivity around the world, we are much better informed.
Over the last 30 days, this is the movement in commodities that normally are affected by world conflict.
Copper down- .005/lbs.
A few facts to think about regarding improvements in steel making:
ArcelorMittal-Cleveland- a Basic Oxygen Furnace operation built in 1913. Employees approximately 1900 employees, produces 3.8 million tons of steel per year. Equals 2,000 tons of steel per man.
Big River, Osceola, Arkansas- an electric arc furnace, steel manufacturer, built in 2016 highly computerized low labor man hours. It is expected that within a few months Big River with expand production to over 3.5 million tons of steel
Per year with still less than 600 employees. This will equate to 5,800 tons of steel per man.
With the advent of higher and higher technologies and improvements in cost controls we will continue to see greater returns and better usage of our precious resources, scrap.
Wishing everyone an enjoyable beginning of spring and hopefully a gateway to pleasant weather for the summer.
As always I would like to remind everyone that there are many ways to contact us for either container exchange or just to ask a question of myself, Ken or TJ.
www.kimmelscrap.net look for scrap metal request for pick up.
T.J. Yarema 103