Metal Recycling Entrepreneur
My dad & I were talking today and Ford is making there half ton pickups all out of aluminum, cab....frame....everything from aluminum. If the rest of the automakers would follow suit the next few years there could be quite a demand for aluminum which should raise prices & make for a hell of a payday, Now granted this may be a year or two down the road. Any thoughts or opinions on this?
Last edited by Dieseldozer; 01-29-2015 at 11:51 AM.
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Well since Alum price is depressed now- even with an entire year of F-150's rolling off the line.. and we are all still getting .40 cents a lb.. thus far it hasn't helped at all sadly!
Would be nice if this were enough to push prices up.. I really wish it had.
I'm so into scrapping.. When my Steel Toe Boots Wear out, I cut the Steel out of them and recycle the Toe!
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Metal prices are governed by world policies of which Ford is just a blip, the acquisition of Al for Ford has already been factored in for this and probably next year, however if others like GM decide to jump in it may make a small futures jump. The biggest factor in the metals market are emerging economy's ( we are sadly not one of them) like
china, Turkey, India, and Africa. Their economy's are coming to a screeching halt so the down trend is expected to last at least 12/18 months.
I don't even think another world war will bail us out this time as it did in 1914 and again in 1943. The next one (already started) will be fought with fiat $ and computers. If Nukes are employed the next one will be fought with sticks and stones as stated by Einstein. just my .02
"anyone who thinks scrappin is easy money ain't doin it right!"
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P & M Recycling - Specializing in E-Waste Recycling.
If you enjoy your freedom, thank a vet.
Iam getting. 50 or more depending on #. I think al. Is the one metal that China doesn't effect. Check out the history of al. it's pretty stable.Originally Posted by sledge
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It has been hanging tough compared to everything else.
Recyclable Material Merchant Wholesaler
Certified Zip-Tie Mechanic
"Give them enough so they can do something with it, but not too much that they won't do nothing."
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It's nice to see Ford taking steps to be economic starting with the aluminum manifold, then the headers, the engine block, then the discontinual of the Econoline vans, and now the rest of their trucks. I can see the reasoning behind it as this is one of many things that've kept them on the map while Chrysler was sold to Fiat and Obama bought GM. Follow my thought process for a moment:
Ford makes their trucks completely out of aluminum and what'd you just do? You not only shaved off pounds of steel weight but you just set the bar high for your competition. Because the cost of manufacture is now lower then before, you're able to pump out 5-10x as many then before, putting more 1/2-tons on the lot(I've always had the general idea that one day Ford would make their F-Series split into two trucks: one to handle up to a ton and one to handle one to five tons). In the process you also just brought the price of a 1/2-ton truck down in price from $30-40k to possibly $17-18k, increasing your profits in the long run, outdoing your competition.
Do I think it'd be enough to raise the price of aluminum? Possibly but not by any significant price(maybe a nickle if that). I'd be shocked if aluminum reached a dollar a pound but then again, price near me's at the lowest it's been since I moved here in 2010 so anything's possible. If I lost anyone, sorry.
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I can see the aluminum price going up. I am already getting low to mid .50/# on old and high .70/# on extrusion. It may be more regional since we are in the back yard of the automakers
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Aluminum has actually gone up $.03 to $.05, all types for me in the last couple of weeks. Everything else way down!
There is a supply deficit for aluminum right now. But if prices go up a lot of primary smelter capacity will be restarted and we will be back to over supply again.
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