I tend to network with the local scrappers and the group consensus right now is that they're holding / hoarding till the price comes back up. Most of them have done it for at least fifteen or twenty years now. They know their stuff. The pattern has been that prices drop in the fall and come back up in the spring.
That works as long as the economic landscape doesn't change.
I think that most of us get the connection between energy prices ( fuel prices ) and scrap prices. When the cost of a gallon of gas goes up the prices they pay at the scrap yard go up. When the cost of gas drops scrap prices drop.
See ... everything is interconnected. It's all about understanding how those connections work.
The next step is to look into the future. It's all just guesswork. I don't have a crystal ball or anything but it looks to me like fuel prices are still dropping. What i'm looking for is for the price to hit bottom & stabilize. When that happens it's likely that scrap prices will stabilize too. (I don't know when that will happen.)
It's all probabilities. You have to ask yourself ... " what's the most likely thing ?"
Is it likely that gas will go back up to 3.80 $ a gallon anytime soon ? If it does, then copper might go back up over 3.00 $ a pound.
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