Podcast Transcription: Metal Monday Ep. 10 - 3.8.2021

Updated: May 5

Hosts, Nick Snyder and Brett Ekart, talk about their weekend shenanigans and the scrap market prices for the week of March 8, 2021.

Nick:

All right, welcome everybody. It is March 8th and it is Monday. What's up Brett?


Brett:

Monday fun day.


Nick:

We got copper. I mean, copper is... I haven't checked in a little while.


Brett:

It's up. It's up two pennies as of right now.


Nick:

Why? I mean, a lot of people use the Kitco app. Why is the Kitco app different than the COMEX? Just real quick. Why do they use it?


Brett:

The Kitco app, the free Kitco app-


Nick:

The free one-


Brett:

Is based on the London metal exchange and it's delayed by a lot.


Nick:

So you use... That's LME, but you're selling off COMEX, right?


Brett:

COMEX, right. COMEX provides your futures contract, so if you sell today... Let's say, when we sell chops today, we're selling off like May COMEX. So there's not a huge spread, but there can be sometimes. A center too, just depends. But generally speaking, I pay attention to the COMEX for copper, aluminum, just because that's what you're selling off of.


Brett:

Then you obviously keep a pretty good eye on the Midwest premium because that's kind of the delta between saying your LME price, the Midwest premium, and then also supply/demand. Like what different mills need at the time, or let's say there are guys out there that book XYZ, tons of XYZ aluminum per month, and they guarantee that they're going to be able to find that material for the mill. They're based off formula pricing. So sometimes they're short, sometimes they're long.


Brett:

That's why it's good to have contacts, a few different buyers for each grade and material you sell. Just because you never know who's in a position that they can be a little stronger on price, or in a position where they might've oversold what they thought they could buy-


Nick:

So they need the tons-


Brett:

So now they have to come up with a better price to drag a few more tons out, to fulfill their mill contracts. So it's good to just have a couple of options for each grade.


Nick:

So last week we talked about ferrous from March, we knew it was supposed to... That it was going to be up. Did they take away 60 last month?


Brett:

Yeah, in that range-


Nick:

Around there. Did they give it all back?


Brett:

Most of it. I think, depends on the grade, but you should get most of it back this month. And I think April is going to be even stronger.


Nick:

So we're going to be up again, hopefully-


Brett:

I think so-


Nick:

I mean, a lot can change by then.


Brett:

You never know what can happen, but I firmly believe. I've been wrong before, but I feel like this month is... If they just never would've taken February way and just kept on the grind, we would still be where we're at, but the flow would be a lot better. When you choke everybody out, as far as our customers, when we tell everybody, "Oh, you're down 50, 60 bucks." I mean, it just really un-motivates people to haul scrap. Especially if they think that down the road it's... Especially in February when it was cold, we got that cold snap. So you took the price down, you got a cold snap and it just jammed. I mean, it just basically stopped the material flow, even on our level.


Nick:

Yeah. We got dumped on. We were almost shut down for a week on the flow. I mean, we weren't shut down, but the flow shut down. The price took a shit when everyone I talked to didn't think it should have, and what we thought was going to happen, did. It came back. At least most of it came back, and we saw copper adjust Thursday, just down Thursday and nickel. But-


Brett:

Nickel has been getting its butt kicked-


Speaker 1:

Yeah, nickel-


Brett:

Which drove the stainless price down a little bit. In aluminum, aluminum got over a buck on Kitco, on LME, for a while. And then it came off back a few cents. Copper is at $4.07. I think the lone bright spot today is platinum. It's the only thing that's even jumped a little bit. But platinum, palladium, rhodium have all hung pretty strong.


Nick:

Cool.


Brett:

So I think the ferrous market's up. That's good. Copper market, it looks like it found a bottom, I hope. That's good. I think, generally speaking, going into springtime, going into March, April, May, things feel fairly positive. Never count your chickens before they're hatched. But I mean, I'm feeling very optimistic.


Nick:

Yeah, me too. Well, we'll keep it rolling. And we'll see everybody in a week.


Brett:

All right man, take care.


Nick:

Thanks.

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