A good reason to deal with multi yards

1956: One Question. How about larger yards that have Feeder yards? As an example one of my favorite yards is one that is one of the big boys.. but the yard itself feeds the main yard- any price differences there? Between if I were to take it to the MAIN yard (with the shredder vs the feeder yard)



So XYZ company is the main yard it is in Northern Indiana. They have an XYZ named "feeder yard" that buys material and it ships to the XYZ main yard shredder up north.

I also have another yard- lets call it "ABC" that is not an XYZ yard but upsells all its material to XYZ- they usually pay about $10 to $20 less per ton than the XYZ feeder yard would.

So technically both are "feeder yards" one is a company named feeder yard and the second is more like a customer of XYZ.

Just wondering if it were logical to take your material to the yard with the actual shredder- if you would get paid better as it is "further up the supply chain" to the mill?

Originally Posted by 1956

Well sledge, i would have to say that the feeder yard has a added expanse in the material they are handling twice,
so i would think that the main yard where the shredder is would be able to pay you more like $10.00 a ton more most steel after being processed
travels by rail to the mill.

So it may go like this (please correct me if I'm wrong)

ABC Yard- Customer of XYZ Pays $200 Ton
XYZ Feeder yard (feeder of the main yard) Pays $220
XYZ Main Yard with Shredder Pays $230 or $240?
XYZ Main Yard: Sells to mill for $340 Metric Ton (Which is today's Midwest Pricing)

Yes? No? Thank you!