Podcast Transcription: Metal Monday Ep. 13 - 3.22.2021

Hosts, Nick Snyder and Brett Ekart, talk about their weekend shenanigans and the scrap market prices for the week of March 22, 2021.

Nick Snyder:

All right, welcome everybody. We are here for the last Metal Monday of the quarter. Not even a month, we're already a quarter done into the year, man, which is pretty crazy.


Brett Ekart:

I can't believe, dude, it's almost April. This week, it'll flip to April and... Man, it's wild.


Nick Snyder:

For the most part, we've had some really decent pricing, I mean, across the board. Today it's getting its ass kicked.


Brett Ekart:

Today is a blood bath.


Nick Snyder:

Today is not a great example. Still north of four on copper, as long as we're north of four right now-


Brett Ekart:

Do you feel like you're winning that way?


Nick Snyder:

I feel like we're good. I still feel, though, and this could just be my optimism, my wishful thinking, I feel like all this, the markets are light. I feel like they should be higher, with everything else going on, with the way things are ramping back up on manufacturing and just overall production of products. It feels better, I could be wrong. It still feels like it's prime to take off. That being said, iron's going down in April, right?


Brett Ekart:

Yeah, they're going to probably start taking it down here in the next day or two-


Nick Snyder:

Down to 20-


Brett Ekart:

Yeah, I think they're going to... Iron ferrous is going down in April, which to me is crazy, but so is life. You hear me complain about it on occasion, but overall, what are you going to do about it? You got two options: sell it or sit on it. Just like the rest of the non-ferrous this month. I mean, I guess I appreciate your optimism because we're sitting on a shitload of scrap.


Nick Snyder:

We are.


Brett Ekart:

But I guess at the end of the day, if you have the ability to sit on it and you can, I don't think you're going to get hurt in today's market. To be honest, and I've said this before, but when the days are like this, bloody, red, nasty, I want to buy. I don't like buying when everything's just hyper green, because then you feel like you're setting yourself up. But if we lose half the money on everything, I'm in. I know I can buy it right now, right?


Nick Snyder:

Mm-hmm.


Brett Ekart:

That's the name of the game in our business. But the problem is, when the market's like this, not everybody wants to sell. So you kind of really, start really, you start shaking down who needs to sell and who wants to sell, and who doesn't need to sell.


Nick Snyder:

Especially when it's been good when it's been... We've seen $4.20, $4.30, copper. You do get those guys that think it will come back, and we'll see if it does, you know?


Brett Ekart:

Yeah. On the copper side, I think we're in a good spot. I mean, I'm not concerned about the copper. Really, I mean, there's not anything that really gives me a big concern. I think what we're facing right now is we're seeing a strong dollar, and that strong dollar is definitely hurting the commodities' cause. But in my opinion, you can't print the amount of money we've been printing and keep a strong dollar. So patience will win this game, there's no doubt. Obviously, hedge yourself, sell, do what you need to do to make sure you can keep the lights on. I mean, that's important, but I really believe that, and my stance hasn't wavered, that if you're sitting on metal, regardless of what it is right now, I don't think you're going to get hurt. Just because I don't think there's a lot of it out there, I mean look at the price of aluminum. The reason they say that price is what it is, because there ain't enough. I mean, I'm sorry. That's a perfect example, and when everything starts ripping again, there ain't enough shit out there.


Nick Snyder:

And that's why it feels like to me, we're primed for another run.


Brett Ekart:

We're going to get one, and I think across the board.


Nick Snyder:

Yeah, I think so.


Brett Ekart:

As long as you're patient, as long as you have the cash flow ability to stick it out, you'll be good.


Nick Snyder:

And all we're able to do is we adjust as it goes and we try to-


Brett Ekart:

Take care of your customers.


Nick Snyder:

Try to pay them the best we can, but also buy it right because we do... Once we buy it, we accrue all the risk, you know?


Brett Ekart:

Yeah, yeah.


Nick Snyder:

Some people don't quite understand that they'll be like... Even on the ferrous side, and it works both ways where ferrous goes up the next month and you gain on all those tons you bought. But sometimes I'll give customers a warning, "Hey, it's going to be down." And then dump zone comes, they just dump, and I'm like, "Thanks, guys."


Brett Ekart:

Well, dude, that's when I sit next to the accountant and he's like, "What are you guys doing over there? What the fuck are you buying?" I'm like, "Scrap, bud, it's the business that we're in."


Nick Snyder:

Yeah, and we just got to keep buying, puttin' the right numbers out there, and you just try to put the pulse on the market where it needs to be, where you're protected. I always call it the magic number and I call it to our own guys. I say, "We're always looking for that magic number," where we're giving the right value to the customer, we're making enough money to keep the lights on, and staying competitive. Now, it's always hard to find that number until you're really in it, looking at it every day, quoting it every day, and then you can really kind of fill it. And then hopefully buy scrap because we're always competing.


Brett Ekart:

The magic number. There you have it, folks. If there's a takeaway from today, find the magic number.


Nick Snyder:

All right. Thanks, guys.


Brett Ekart:

Have a great day.

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