Why are prices dropping?

PSP - I completely agree with everything that you said as far as being problems in our country. However, I do not see ballooning deficits as a catalyst for falling prices. If anything, the opposite Should be true. As the deficit grows, the dollar weakens making commodities more expensive as denominated in USD. The weird thing is that the dollar is actually appreciating. This is why scrap prices are down. A strong dollar means lower commodity prices. Take a look at the 6 month chart for the dollar. Notice the spike in May right before prices started falling.

All good stuff guys, but what I really want to know is..... Any ideas or opinions on when prices should start to rise?

Originally Posted by Mick

The day after you sell everything you've been saving.

Story of my life Mick.

PSP you are the man!!! My hatred for Walmart is beyond that of politicians..at the extreme end of the spectrum. Outside of gas I only buy from American made firms as close to me as possible. Whatever is left of US manufacturing must be supported, domestic demand for scrap would be the best for our struggling economy. Our spending is the only real vote we have left, make it count!

Originally Posted by Scrapcrazy

All good stuff guys, but what I really want to know is..... Any ideas or opinions on when prices should start to rise?

It might be today. Clean Auto Cast on the Chicago market went up $45 per gross ton from $375 to $420

Originally Posted by TMoney

PSP - I completely agree with everything that you said as far as being problems in our country. However, I do not see ballooning deficits as a catalyst for falling prices. If anything, the opposite Should be true. As the deficit grows, the dollar weakens making commodities more expensive as denominated in USD. The weird thing is that the dollar is actually appreciating. This is why scrap prices are down. A strong dollar means lower commodity prices. Take a look at the 6 month chart for the dollar. Notice the spike in May right before prices started falling.

The reason the dollar is appreciating has less to do with any inherent strength in the dollar than it has to do with the relative weakness of other currencies (particularly the euro) right now. All currencies are weaker now than they were 20 years ago, it is just that ours is still stronger than the rest.

Originally Posted by Mick

or less weaker.

LOL, good one.