Can't Get Any Worse....

We're usually ahead of everyone on price drops, so read with a little grain of salt....



Today, I dropped off a few computer cases at the local yard and picked up some farm equipment parts (They let me look at any equipment that comes in- I'm a farmer, so I've scored a few tires and parts this way). I was chatting with the yard head while the tires were being pulled for me. Shred is currently at $20/Ton, heavy at $40/Ton, and prepared at $60/Ton. He told me that next week will be the last week that they'll pay for shred or heavy. After that, they'll take it, but there won't be a payout. They're not hauling much of anything out until the prices rise (They're on about 40 acres- out here, they have the space).

Not a pretty sight....

That doesn't actually sound too far from the other yards in the area actually. The larger one in Billings is around $40/Ton (As of last month), so this seems reasonable as we're in a small, isolated area. They're basically just a feeder yard to the large one.

I don't haul much shred anyways. What I took in today may have been worth $0.09. The next yard is 100 miles away, so I'm not hauling small loads of cases there. I just need the space, and it's either this or the dumpster. I'd rather give them to a recycler than put them in the landfill.

Plus, I got two implement tires for the price of mounting at the local tire shop.

It's safe to say that they won't be getting any large loads from me, though!

They buy some. From what I understand, they're owned by a trucking company that uses the yard as a tax write off more than anything. Today, there was only one guy at the yard (Usually there are two, but it was 3 a few months ago), because the company had the other one driving a semi to drop off a machine for them.

We had one other yard in town that closed (Health reasons supposedly, but I have my doubts there), so I think they just started doing it as a way to get some use out of their land. They have some farm equipment in, but strangely only three vehicles. They usually have many more. Maybe they just hauled a load out, though?

I'm not good at reading signs, but the impression I got was that they would basically just pile everything up and keep expenses very low. They're obviously hurting compared to what they were doing, but I think the parent company doesn't care too much, as they own the land (It's a worthless spot), the trucks, and can always pull someone who has a CDL.

It's weird though. I hope they don't close for a while- our nearest yard then then would be either 125 miles away, or 125 miles away in another state!

Ok so if Sirscrap comes in and sees this upcoming comment he'll "give me the business" but I don't care.

Yesterday I got the opportunity to purchase 500 lbs of hard drives without boards. I was able to get them for .25/lb as I can run them to my buyer and get .45/lb without touching them.. easy peasey right? I load the van and head to the buyer.. they stopped buying copper, brass, aluminum, even electric motors "about a month ago" Went to another buyer that my initial buyer recommended, guy had no idea how to grade them so he is talking to his brother to find out a price.

Called my local e-waste recycler- .10/lb

Headed back to town and hit the local scrap yard.. they offered to pay .15 as "breakage" So as of this writing I have 500 lbs of stuff I may very well be taking a loss on.

Never in my 25 years of scrapping have I ever seen scrapping conditions like this. Anyone can say what they will but this is about the biggest freefall of h-e-l-l in prices and lack of demand that I have encountered in my lifetime.

Buyer #1 had 2 on staff (where they usually have 4)
Buyer #2 had 1 office guy doing everything (but there wasn't much to do as I seemed like the only guy who showed up all day)

Oh wait, this isn't the clubhouse. Well, I guess I'm trolling my own thread now....

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I literally hauled in nine computer shells. That won't justify a rolloff. I actually own four road-legal trucks, so that's not an issue. It doesn't pay gas money, though, so I haul what I can in the car, because I work within two miles of the yard anyways. A trip a day makes the yard look a little cleaner and gives me more space.

I was more than happy with the implement tires I got. New farm implement tires are about $200 a piece- $20 is a lot better! I figure that throwing a little shred their way is a nice gesture.

As some of you know, I deal in more than scrap (Computers and working components). Scrap metal is a very small part of what I do. If they start charging, though, they can forget it. I'll start hoarding then....

Not a good sign of the times....

Update as of today on the Hard Drives:

Called my normal Scrap yard and asked what they would pay. Guy says "Send me a Picture" So I did. He says "Great.. I'll pay .36/lb" I could hardly get in the van fast enough. So I make the 22 mile trek to the yard. Once I get there he says "Ohh well.. Those are crap" I said "What? I sent you pictures as you asked and you said you'd pay .36 lb for em!!" He goes "Nah.. let me check on price.. he comes back and says.. are you ready for this: .02 cents/lb.. Freakin LESS than sheet steel pricing for Aluminum cased hard drives. What the Frickin Frack!

I close the doors of the van and head north.. back to the guy who was trying to get me pricing yesterday.. I tell him "Listen I'll sell them at the sheet price you gave me yesterday (.30/lb) he says "Well we are still trying to see if they may be worth more.. so why not load them off onto a skid and leave them here and we can get you a price on Monday" Really dude.. what do I look like some noob?

Back into the van.. further north. Stop at the local yard I hate.. they offered me .15 lb as "Aluminum breakage" So I sucked it up, loaded em off and took my lumps. After being offered .02/lb for em and another place having no clue until Monday.. I just ate the $hit sandwich and chalked it up to experience!

Originally Posted by sledge

they offered me .15 lb as "Aluminum breakage" So I sucked it up, loaded em off and took my lumps.

I know it is a lot of work but I tear down all my hard drives, when I have a chance. Probably have 200 waiting to go. but then I get full AL price. My yard guys always go through everything and sort it, even if I have 10 boxes in the back of my SUV. The hard drive cases are sorted into cast - machined and anodized, to me they pay pretty good.

The place is always very busy. 6-8 guys to unload cars and truck and two scales.

only one way to go from the bottom..guess it's the only good part about being there.

NH: Still feels like they have more room to go.
Here is the part that really burns me arse. As part of my bread and butter gig I am responsible for the inventory at a duplex community, I receive and stock all the items we utilize in the complex. As prices for our hard earned scrap has gone down.. the prices of our materials that utilize that scrap have gone UP!

Examples you say: Sure thing!
Aluminum Bifold Door Track- was $11.68 1 year ago.. now $14.69
Pop-Up Assembly (Brass) was $5.02 1 year ago.. now $8.46
TOILET SUPPLY Line 12" Was $4.04 now $4.13
TOILET CLOSET BOLTS (2 PK) Brass Coated Steel- Was .63 now .82
Steel Mailbox: Was $13.18 now $15.56
Steel Bi-Fold Door- Was $64.60 now $85.05

And the list goes on and on. What does that tell us? It means that we are paid less and less for the scrap to regenerate into materials to create new products.. but yet the manufacturers are charging MORE.. not less for their end products. I don't see this as a "downturn" I see a bigger picture of a huge SQUEEZE on everyone in this industry.. from us the small guys all the way up the chain. Companies have to be demanding raw materials at lower prices and thus.. with the "trickle effect" it rolls down to us. I see a bigger problem than this supposed "It's all China's fault" I call B.S. on that.