Is your scrap yard dead?

[PistoneScrapProcessing]

By dead I don't mean dying. I mean the amount of scrap flow into the yard and the piles are very very small and everything is processed. I noticed a majority of the yards are almost cleaned up in my area and most of there materials is processed waiting to be shipped out. All we pretty much have left in the yard we are doing contract cutting in is unprepared shear heavy melt, rebar and torch material. There is no clip and plate. It seems as if ever since this debt limit deal went down to the wire that material has fallen off a cliff. It also doesn't help the markets are down 30 bucks plus a ton this month. Anyone else seeing the same thing I am seeing? Whats your opinion on it?

[Mick]

My opinion (FWIW) would be the yards are needing cash flow but suppliers are holding back. I just heard yesterday that one yard around here went under. I knew they were having problems. The day I went there, it was closed since a check of theirs had bounced that morning. He said they'd reopen as soon as a check for their last load came in. That was a couple months ago. Now, apparently, they're out of business completely.

[rca987]

Yes. I have even noticed less scrappers, as I have been getting full truckloads on trash night rather than a full load after 3 days.

[PistoneScrapProcessing]

Its a sad sad day when a scrap dealer goes under pick and choose who you sell you to. Cash flow isn't a problem with yards handling thousands of tons a month they usually have the cash on hand for rainy days. Remember what goes up must go down.

This just feels all to similar to 2008 almost to a T. The only difference this time around is the scrap yards aren't sitting on thousands and thousands of tons of material that they bought at 500 a ton and couldn't sell any of it till the middle of 2009. At a severe loss.

[Torker Man]

Interesting..

Over here in Oz, things are slow too, way less scrappers on the road, and yards are starting to advertise on radio (never seen that before)

I gues those that got involved when the prices BOOMED have moved on and supply to the yards is down?

Maybe a great time to negotiate a better deal from you local yard??

Sounds like a sellers market (except for the lower price )

[High Voltage Processing]

I for one can't get enough material. I have tapped every yard in the state and a couple more out of state. I am in a buying frenzy right now with higher prices and still I can't get enough material. The whole thing is depressing. It is like the scrappers in this state have fallen off the face of the Earth.

[PartTimeScrapper]

My opinion (FWIW) would be the yards are needing cash flow but suppliers are holding back. I just heard yesterday that one yard around here went under. I knew they were having problems. The day I went there, it was closed since a check of theirs had bounced that morning. He said they'd reopen as soon as a check for their last load came in. That was a couple months ago. Now, apparently, they're out of business completely.

YEt another reason to not take a check for your metals. There is nothing to keep them from going out of business and you not getting paid for your load.

[Mick]

YEt another reason to not take a check for your metals. There is nothing to keep them from going out of business and you not getting paid for your load.

I wouldn't really be worried about one or two loads. If the check bounces, they'll usually move Heaven and Earth to make it good before it gets turned over to the Attorney General. Then assets start getting attached over a few hundred dollars. They'd rather just have bankruptcy court to deal with.

[EcoSafe]

WOW as you can see by my last post here it is the exact opposite.

[Mechanic688]

I for one can't get enough material. I have tapped every yard in the state and a couple more out of state.

Is Indiana too far out of your arena? If not I can PM you a few yards and phone #'s here in northern Ind. And one is a very large one with over 10-15 yards in Ind.

[01GTB]

I dropped off a few tons of light steel 11 days ago. The place was a madhouse at 11:30 on a Saturday morning. They had just enough cash to pay me in small bills. They said they had been overwhelmed that morning. I went back to the same place yesterday to drop off some non-ferrous. The place was dead. Their sheet iron price was down, but I could not believe there was nothing coming in. I saw no ferrous coming in at all. I was there 40 minutes or so. There were a couple small loads of non-ferrous in the back of pickup trucks and some bags of cans in cars. I was the only one with a trailer.

I will be going to another yard tomorrow to drop off a very small load of sheet. They are paying more, so it will be interesting to see how busy they are. It's actually the last I have. As a part time scrapper, I noticed a big drop off in stuff on the curb 3 to 4 weeks ago. I also stopped getting calls from my regular places. I originally thought there were just that many more scrappers out there. But I haven't seen much in the back of anyone elses truck either, so I thought perhaps there just isn't as much being put out. Does the amount of scrap on a curb foretell an economic downturn? I haven't seen many scrappers on the road since last week either. Today, while I was doing something else, I saw a cast aluminum grill. I couldn't get it and completely forgot about it. Hours later I drove by and it was still there. That would not have happened even 10 days ago.

[High Voltage Processing]

Is Indiana too far out of your arena? If not I can PM you a few yards and phone #'s here in northern Ind. And one is a very large one with over 10-15 yards in Ind.

It is not too far out at all. In fact, I personally would be the one doing the pick ups there as I am from northern Ind. I am always looking for an excuse to take a roaddie out there.

[Filthy]

lower prices for me means more leg work and more cashflow. i dont mind the legwork, but its hard to find the time i need to finish my breakdowns. i got a garage bay and a patio full of things i need to break down. i just cant get it all done in a day with all the nonsense i do.

But then again, the yard i use has been rather bare and empty every time i go there... i thought it might be because i'm the only nut willing to scrap in the cold, but we'll see. i'll scrap in the snow. thats what tire chains are for

[Torker Man]

Cheque???

What the.

here its ALL cash business.

(maybe an exception is huge loads on regular basis)

I rekon the scrap yard that started using checks would be the first to go under...

[EcoSafe]

this would be the time for those with a little cash to buy from smaller scrappers, if you can hold till spring, you will likely double your money. with light iron down to .o6 I dont see it getting much lower. alu is down to bottom, copper could still drop some.

[skylinejack]

Well, it sure hasn't slowed down here none. Everybody and their brother n their mother is a scrappin and a scrappin plenty! Only problem is there just isn't enough scrap to go around so folks is bringing in very small loads.

[01GTB]

I will be going to another yard tomorrow to drop off a very small load of sheet. They are paying more, so it will be interesting to see how busy they are.

Just got back. They were in fact paying $250 per ton. The highest around. And the place was dead. I commented on it to the woman working there. She said it had been really slow all week.

[AKman]

Went from lines to get on the scale to nothing. The last 3 times I went I was the only one there. The machinery was quiet and the yard was the cleanest I've ever seen it. Creepy.

[EcoSafe]

maybe those Yankee scrap yard owners are all headed for the Bahamas or Boka for the winter. just sayin.