February 15, 2017
To The Loyal Customers of Kimmel Scrap Iron & Metal
Most of us work with numbers every single day. From work to home, from the price of fuel to groceries we look at the numbers.
I enjoy looking at trends and statistics as they apply to both my personal and professional life. In this month’s newsletter I think I will stay on topic of professional. It has been 10 years since the last time there was a price increase in February for scrap steel and iron prices. We have had on average a $25.00 decrease in scrap prices in February over the past time period mentioned. In 2015 we suffered one of the worst price declines of nearly $90.00 per ton. What is so special about February? In February we usually have bad weather in the North and Eastern coast which hampers both inbound scrap flows as well as shipment. Export from both coasts are usually slowed at this period and many yards deplete inventory in January for both handling cost and tax reasons. February is the beginning of the construction season, and mills continue to put pressure on prices to remain low.
This February 2017 is a slight abnormality in that prices declined, but as mills began to review their orders and inventory, that decline seemed to vanish. After a much smaller decline than was hoped for by steel mills the market seems to be in equilibrium. Do we expect a market correction in the next few months? I would think that it is a most likely occurrence.
Many of you have tried our new dispatch system “Schedule a Pickup” from our website www.kimmelscrap.net which works well with portable smartphones or office computers. You are always welcome to continue and call our office at 313-934-1100, fax 313-934-2141 or use email@example.com
T.J. Yarema 103