To the loyal customers of Kimmel Scrap Iron & Metal.
In this check as well as next check for the month of March you will notice of an increase in most ferrous scrap metal prices. The question we would like to know is why and for how long will these prices be elevated. There are many good reasons to explain why the market should not be increasing at this time. Alternatively some good reason why it has increased
We have been experiencing rapid interest rate hikes, trying to slow down the economy and inflation. Most of us in our industries have seen prices for new steel go up substantially. We have fuel, labor increases, earthquake, hurricane and other natural disasters. We have steel mills in Turkey trying to squelch any price hikes on their raw material scrap, but are in desperate need to rebuild their infrastructure.
In the late 2007 and 2008 we had prices increasing with huge movements each month. By the end of 2008 prices came down faster than they went up. Everyone knows what goes up must come down. The problem is you don’t want to be the last person holding all the inventory. During that time period the loss of inventory value was inconceivable. We know prices will come down the question is when?
One of the effects of higher scrap metal prices, that being scrap metal theft. We are proud that for the past 20 years we have declined to purchase scrap metal from the public to avoid possibilities of adding to the scourge to our communities of stolen items from the city and residents alike.
We at Kimmel Scrap value our relationships and work hard to maintain them, with over 70 years we learn to listen. If you have any questions or concerns please feel free to contact either myself, Ken Schutt or TJ Yarema.
Ken Schutt -102
T.J. Yarema 103