October 14, 2022
To our loyal customers of Kimmel Scrap:
We all are watching and reading the local and national news. Recent actions by the Federal Reserve Board in an attempt to keep inflation in check has raised interest rates that banks must pay to borrow money. These costs are carried down to us the consumers. For those who have working lines of credit or are considering major additional improvements to our companies, this additional cost has made many reconsider these purchases. The current Fed rate is 3.25% which translate to a 6.25% prime rate for excellent borrowers. The difference between the spread is the profit for the banks based on risk and operational costs. How do these costs affect your scrap metal prices? Steel mills and foundries have the same issue with rising costs through energy, transportation and labor. Our prices are determined by both individual steel mills, foundries, industry publications and of course supply and demand. We are doing everything in our power to keep these costs in check while treating you our customer with the utmost respect and provide timely service at fair prices.
As we are approaching our 73rd year I hope you are able to know that we have weathered these conditions many times and look forward to serving you with personal attention you deserve. If you have any questions or concerns please contact either myself, Ken Schutt or TJ Yarema.
T.J. Yarema 103