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Crazy times in the scrap industry

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    matador's Avatar
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    We purchase laptop computers and many components for greater than scrap value. We offer a shipping reimbursement program.replies

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    The problem is margins. The solution to lower prices, as a yard, is to pay less. The problem is that there is a price floor that you can't really go below. Out here, it's $0. A lot of the scrap here is farm machinery- before paying for getting rid of it, I can guarantee that farmers will wait and keep the item. Others will too. I think we're to that point where for some yards, it's impossible to maintain margins, due to that price floor. Therefore, they're losing money (For the sake of simplicity, I'm calling a reduction in profit margin "lost money"). What they're trying to do is minimize that loss. Your yard is figuring that they can truck the material and have it shredded for less than they would need to run the equipment. That's not good.



    Our local yard is basically a feeder yard. They're stockpiling, because they can't make any money on hauling scrap. They have a very large area, so they're hoping that they can hang onto everything long enough. Neither scenerio is good. Prepare for a bloodbath....
    More than Scrap Value Shipment Tips: http://www.scrapmetalforum.com/scrap...tml#post242349

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