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RESULTS: Does your scrap yard share prices?
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Report Date: 08/10/2022
Over the last two weeks, I’ve spent much time talking to customers in the scrap yard, getting their opinions and takes on the markets. During that time, I asked many of them about their concerns, and we got various answers, from steady prices to tax reporting. One of the biggest things we took away from talking to customers firsthand Was how they liked coming to scrap yards where they felt the staff could see you and explain the material to them. Many of them have been to other scrap yards before, as many of you have, and I think it’s important to experience multiple types of yards before finding the 1,2, or even three that you deal with overall.
You Know Scrap…Sometimes Better Than Yards
Finding a good partner, whether dating or in scrap, is important, especially when dealing with various materials. Most of you scrappers are knowledgeable in scrap. The scrap yards that are going to explain the material to you and work with you on pricing are the ones that you want to be able to deal with because when you get that super load, or you save up, you may be able to work out deals with them that you might not be able to do with yards that you just show up to for the first time. Here are some of the key takeaways that we received from customers:
Getting Explanations on Scrap Tickets
One customer told us that knowing that the yard staff would explain material and go over tickets was super important. He told us directly that he might be able to get more money by driving to another yard, but he was never sure if he was getting the right weights or the right pricing or material classifications. By working with Rockaway Recycling, he knew that everything was happening correctly. He didn’t mind giving up a little price difference because he knew the security of correctly selling material was very important to him. Read more here.
Getting Taxed on Scrap Metal
Another customer was concerned with taxes as he could sell a few thousand dollars worth of steel in copper in the last few months. Knowing how the tax operations work is important, and asking your scrap yards how they interact with the different tax offices will give you Security and, more importantly, knowledge on scrapping on a full-time or part-time basis. Some scrap yards have different laws that they need to abide by knowing what the state laws and local laws are will help you out overall. Read more here.
Asking How Materials Are Graded
The third customer we talked to said that learning about materials he didn’t know existed was one of the reasons that he continued to come to our yard. While he does not sell steel to Rockaway Recycling because he’s a large demo company that produces thousands of tons a year, he does sell all of his non-ferrous because he was able to learn about materials and make more money through the sorting and separation process. Now he is a very large-scale scrapper because of the size of his business, but it still shows that knowing your scrap yards intimately will provide more knowledge than just showing up somewhere and hoping that you found a good yard. Read more here.
Ask Us What You Think
I spent a little more time with customers over the last week we were able to see the different perspectives from a scrapper point of view, which gives us better flexibility and knowledge when it comes to writing these reports week after week. If there are concerns you’ve had before, we’ve tried to discuss those in videos, but we’d love to talk about the more in the weekly reports as time goes on. You can always comment on our YouTube videos , and we will happily answer your questions.
Energy Column: The “NEW” Energy Bill
The downward trajectory continues for gas and diesel prices this week. The national average for 87 gas is a shade over $4 a gallon, but far from the nearly $4.70 it was a month ago. Diesel has experienced roughly the same fall from grace over the past month. This elongated decrease in price continues to be the product of crude prices falling as recession fears mount. To give more detail in the make up of these prices, here is just how much crude oil and other inputs make up our overall gasoline and diesel prices:
The Senate’s Inflation Reduction Act includes climate legislation deemed a big win for renewable energy development and EV deployment. However, the devil is always in the details regarding these types of legislation. In the world of EVs, the $7,500 dollar tax credit for consumers after purchasing an electric vehicle is now in jeopardy. The reason is the new stipulations passed in this bill in determining what qualifies and what no longer does from an EV perspective. For example, the bill includes requirements for domestic manufacturing of EVs and their battery components to qualify for the extended credit. As written, the law requires:
- 40% of battery components be sourced from factories in the U.S. or its free trade agreement partners
- Batteries be the U.S. made by 2029
- Chinese components and minerals are phased out beginning in 2024.
- The final assembly needs to take place in North America
- MSRP needs to be below 55,000 for cars and below 80,000 for trucks and SUVs
Car manufacturers and automotive trade groups have communicated that around 70% of EVs on the market would become ineligible when the bill passes and that 100% of EVs would not qualify for the full credit once battery components sourcing goes into effect. Of course, the end goal is to bring domestic manufacturing and mining to the U.S. so we can eliminate our reliance on China for EV development. However, time will tell if our country’s supply chain, infrastructure, and workforce are prepared for such stipulations.
The most concerning piece regarding EVs is that the US currently only sits at 3.39% market penetration. By the decade’s end, that share is supposed to increase to nearly 30%. However, these projections were made before the Inflation Reduction Act was passed. It will be interesting to see what happens to overall US demand if consumers cannot receive a substantial tax credit for EVs in the future.
Non-Ferrous Scrap Prices
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Non-Ferrous Prices & Market Status
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Copper – SELL
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Aluminum – SELL
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Brass –SELL
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Copper Wire – SELL
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Stainless Steel – HOLD
SEE ALL PRICES
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Ferrous Scrap Prices
Ferrous Prices & Market Status
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#1 Steel – SELL
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Shreddable Steel – SELL
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Light Iron – SELL
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Cast Iron – SELL
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Complete Car –SELL
SEE ALL PRICES
Catalytic Converter Prices & Market Status
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Catalytic Converters –SELL
SEE ALL PRICES
Don’t forget to check out weekly videos and podcasts on YouTube!
Other Valuable Resources
- Will Scrap Prices Go Back Up in 2022?
- Best Ways To Make Money Scrapping
- Getting Your Wire Ready for the Scrap Yard
