Originally Posted by
ccantu
Steel contracts are typically set month to month. They should be settled early next week so whatever price your yard is paying next week should be safe for a while. You can buy based on that. Toward the end of next month try to talk to a buyer or manager at the yard. They should at least be able to tell you what they expect to happen in March. Essentially we are all brokers, and surprises aren't good for the facilitation of transactions. So the people you do business with should be pretty straight forward with what they know about market conditions.
Although most scrap metal indexes are bi-monthly, scrap metal is a commodity and the big boys are constantly changing their investment strategies. Around here the value of scrap metal is changing daily and I can verify that is the same in another mid-west location. Yesterday a commitment for price was given and today the price dropped $ 15 a ton. They honored yesterdays price because of the volume that I haul. Do not expect business as usual, everyone is trying to hedge their bets.
Bookmarks