July 15, 2019
To The Loyal Customers of Kimmel Scrap Iron & Metal Co.
As many of you view your checks and statements enclosed you will see that our great economic recovery in the commodity sector has not begun. Scrap Metal prices according to some indexes actually have a zero value. This is based on very low scrap metal prices, inbound trucking costs, loading railcars at our facility and outbound freight costs to consumer a/o steel mills.
A customer and friend of mine commented on how this looks like 2008-2009 all over again. Sometimes we forget what we all went through during those trying times. Scrap prices in mid-2008 were the highest we had ever seen and dropped just as fast by $350.00 per ton in three months. Then by the last quarter of 2008, we were at prices slightly better than today. We are all fortunate to have survived during the great recession and Kimmel will get through this as well. We are doing all the prudent activities to reduce extra operating costs and keep our equipment in good shape. Do I expect a quick recovery in commodity prices? I don’t see any reason for a quick recovery but as we all know, world economic activities drive our market and we will just have to wait and see.
We expect a challenging summer, but with 70 years of experience, nothing is new.
Please remember we like phone calls and enjoy talking to you when requesting service. The phone number is 313-934-1100. You can still email Dispatch@KimmelScrap.com, fax us at 313-934-2141 or submit a request for service right from your phone using our website, www.kimmelscrap.com.
Either way, we appreciate you.
T.J. Yarema 103