Why am I breaking down steel?

I ask my self this question. I have scrapped 2560 lbs. of steel this year and made $99.99 on it. Yes that's $.04 lb. avg. Sheet iron is $.0225 a pound so I am not making that much more by breaking it down. I do take fewer trips to the yard as I hold on to the prepared steel until I have a full load. If I get a fridge or other large item I break it down some what and add my other sheet iron to it. Every time I go to the yard with steel I think about the days of $.115 a pound for sheet iron! Those were the days...

Feeling the pain. About 50 tons of #1 is on the ground and close to that amount in # 2 and unprepared. Shed full of non ferrous is worked on everyday. Still cutting and scrapping, just not selling. When you have the storage and time, it does not make sense to sell.

So why do I still cut, prepare, and scrap. It is entertainment, freedom, and goals. I am betting Happy Days will return before I am recycled. By the way, I have not made one cent this year scraping. At the same time it is cheap entertainment.

Light irons at 5 cents a lb here. For a fridge(compressor and anything worth more removed), trash bag full of restaurant size steel cans, a little grocery cart, and 2 little grocery store bags of small steel items from breaking stuff down plus a few other random small pieces I got $7 :/

I can't justify hoarding steel and I have the space to do it , when I have a truckload it goes in . I would rather turn and burn . Steel piles in my area get unwanted attention and I feel it's better to sell at these low prices than have someone steal it . I have turned down a few offers to remove steel items , after figuring in time and gas i would be lucky to break even on those hauls . I'm not knocking anyone who does . With the right amount of volume there is money to be made . I hope steel hits a record high this summer for all you guys saving it up . It should increase just due to the fact that I have sold mine . Usually how this works .

Hobo - I imagine that $99 could buy more items to process or perhaps a new tool you have been eyeing up . Either one is better Imho than a pile of steel . I used to use my steel money for gas , now I'm lucky to get lunch or a pack of smokes .

Luckily, I am able to get $135 / Ton still. I have always been particular about what I break down. To me breaking some things down is like tripping over dollars to pick up a penny.

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Originally Posted by Patriot76

Feeling the pain. About 50 tons of #1 is on the ground and close to that amount in # 2 and unprepared. Shed full of non ferrous is worked on everyday. Still cutting and scrapping, just not selling. When you have the storage and time, it does not make sense to sell.

So why do I still cut, prepare, and scrap. It is entertainment, freedom, and goals. I am betting Happy Days will return before I am recycled. By the way, I have not made one cent this year scraping. At the same time it is cheap entertainment.

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Have to agree here. I still do sell a lot of lighter stuff that comes in (dishwashers, etc), but am hoarding the heavier more compact stuff (water heaters, etc). Working full time I am limited on the time I have to take stuff in, so I take the lighter bulkier items in, hoarding the heavier steel. When prices recover about half way or so (and I think they will), I will take a couple of vacation days and take in about 10 16ft flatbed trailer loads I have accumulated.

Wile we hit .04 # to .05 it was for about 2 weeks . The yards got slow so there at .06 to .07
Copper #2 $2.14 AL .50 to .55 #
But we all have the comparison from what was stellar .

We have been hit with a lesson . https://www.youtube.com/watch?v=lxwF93wnRQo
What 60 Minutes Got Wrong About Rare Earths And China - Forbes
The fine money we make has a niche with China having an effect on us . The rug was pulled from under us
it was the perfect storm .


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https://www.youtube.com/watch?v=7sG9_OplUK8

Yeah CH, I saw that 60 Minutes story as well. Where did the US screw the pooch on that one???

With much of our scrap yards selling over seas the pooch is busy still .
When you put things in perspective , even with prices down with some diligence
the money is there .
As I saw prices plummet I feel that could be a future truth , When over seas has no need
of our scrap . We will be done . Scrap yard workers have lost 1/2 there hours .
As one worker told me he used to put 80 hrs now he is at 40 hrs .

We need realize yes the market should rebound somewhat BUT
there may come a day & it will be called " That Day "

I heard on a talk radio station - China is buying massive drums of crude Oil from Iran cause price are low
well one must figure now is a buyers market for scrap also . Makes me wonder if this is purposely occurring
for those who buy our product overseas.

I went to the steel yard this morning for the first time since October with a trunk load, partly to please the wifey, partly because I had other business nearby. They say they're still planning to open their much larger and modern yard that's about 3 miles or less from me in May.

It didn't seem any less busy than any other Sat. morning (they're open from 8-11 on Sat.) and the piles didn't seem too much less. Because I have so little and I tend to be a bit intimidated with all the other bigger rigs in a fairly tight place, I stay near the entrance where they have a dumpster a guy can throw small loads. Maybe a reason for the steady business is this is the only place in 70-100 miles that buys steel. Maybe people that do shred grit their teeth from it dropping from $115 a ton last summer to $40 today and grin and bear it. Don't know. I do look forward to their new close by, very spacious yard opening. One less reason going to the other side of town...

Ummm ... I don't know. There's a pretty big disparity between what new metal sells for and what you get paid at the scrap yard.

ie: I needed a 1/4" x 4" x 24" piece of flat aluminum for a job and that was over 42.00$. Don't know the weight, but probably not over five pounds ? Selling that piece as scrap might bring a couple of bucks ?

I -beam and channel might be running 10.00$ a linear foot new ? The scrap value would be pretty low.

There might be a middle way. If the heavy metal could be prepped for re-use it might have value to people doing metals fabrication projects. Sometimes you just have to use new and other times the old rusty stuff is better quality than what's generally available now.