Podcast Transcription: Metal Monday Ep. 14 - 4.5.2021

Hosts, Nick Snyder and Brett Ekart, talk about their weekend shenanigans and the scrap market prices for the week of April 5, 2021.

Nick:

All right. Welcome, everybody. I'm here with another Zoom Metal Monday. We're in April, officially, the second quarter. How are you doing today, Brett?


Brett:

I'm good, man. I'm good. Just headed to east Idaho. Go look at our pipe yards, scrap yards. See what's going on. Check-in on the team and see what we can do to keep things moving here in April.


Nick:

Gotcha. Gotcha. So as we suspected, ferrous did go down. What- how far did we take a dip?


Brett:

You know, somewhere around 20 bucks give or take, but round 20 bucks is what it is looking like right now.


Nick:

Yeah.


Brett:

Across the board, cut grade and shred feed. Which is to me is crazy and another reason why we are sitting on scrap this month. Because I- you're watching the market rip this morning. Biden came out last week, talking about infrastructure. It's already hard to get new steel. New steel prices are still climbing. I think that this blip this month for us, we're sitting. We're going to ship some. We're going to try and keep the lights on. But this market's got a lot of legs I think to go the other direction, to go up. So I'm not too pushed up about where it's at this month.


Nick:

Well, the word that everyone's using, the expression that's supercycle. You think you're really will see a supercycle this year?


Brett:

I don't know. I don't want to predict that. I hate trying to predict a year or two down the road. As much as I just go with my gut and I feel like this market has a lot of room on the scrap side, especially just because of the volume. There isn't... There isn't the volume of scrap other than there was in '07 and '08. I'm sorry, it doesn't exist. If the export market even slightly turns on, there isn't the scrap to support the domestic market and the export market. So that is the... It's going to put some really big fuel on this fire. I think it's going to leave some, my personal opinion, I think it's going to leave some domestic steel mills wishing that they might've taken better care of their domestic scrap customers.


Nick:

They might be short. Their volume might be affected is what you're saying. Right?


Brett:

Yeah. Because people they're going to go chase the dollar, just like what happened in '07-'08. And what happened in '11, '12. People are going to go where the money goes and if they feel like you've been giving them a raw deal, then they're going to adjust. And if the export market opens up and then watch out, man. This ferrous market could get real hot, real quick. And if you've got the scrap, you've got the material on hand I think you're going to be holding something that not a lot of people are right now.


Nick:

Yep. Yep. Yep. And copper today on the COMEX we're seeing it up 15 currently.


Brett:

Yeah. It's ripping this morning. That's a reflection of the stock market and upbeat- the jobs report that came out on Friday was really strong. I think the next couple of months could be really strong for our economy. So we'll see. Like I said, I don't like to predict too far out, but I feel pretty good about the situation that we're in. I feel pretty good about the situation that the scrap industry's in. Just given we get a little bit of export opportunity, it's going to be really game on on the ferrous side.


Nick:

Sounds good. Sounds good, man. How is-


Brett:

You're seeing visions of it in the non-ferrous. You're seeing what that export copper by the Chinese being not just willing to, but being aggressive on anything that's a clean copper product. Whether it's a number one copper or even chops. You're watching this number get pushed and that's because of that. And that's with a stronger dollar than we've seen in a while. So if we get any sort of weakness in the dollar, and I'm not saying we will, but if we do then watch out. Because I think that the commodities prices, they've got a real opportunity to explode higher.


Nick:

Awesome man. Well, sounds good. Brett anything else to add, share with everybody?


Brett:

Nope. Just I hope you guys had a good Easter on your side of the fence. We had a good one with the family and hope everybody has a good April. And we'll see you in about a week.


Nick:

It feels like spring's officially here. Every time I say that in Idaho it snows, so.


Brett:

I know it's supposed to... It'll cool down a little bit this weekend. It's supposed to be nicer the following, it looks like. We'll see.


Nick:

Yeah. Yeah, it was nice this weekend. All right. Thanks, everybody. Check us out. Check us out Friday. Check us out on clubhouse. Also, check us out every Monday. Okay? Thanks.


Brett:

All right, Nicky. Talk to you later bud.


Nick:

Thanks, buddy. Bye.

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