Podcast Transcription: Metal Monday Ep. 17 - 4.26.2021

Hosts, Nick Snyder and Brett Ekart, talk about their weekend shenanigans and the scrap market prices for the week of April 26, 2021.

Nick Snyder:

All right. Metal Monday. Monday, April 26th. The last one of the month. How are you doing, Brett?

Brett Ekart:

I'm good bud, yourself?

Nick Snyder:

I'm doing awesome man. I like when copper went up 10 cents. Like it's ripping.

Brett Ekart:

Never hurts the cause.

Nick Snyder:

So...

Brett Ekart:

$5 copper.

Nick Snyder:

You think?

Brett Ekart:

$5 copper in 2021.

Nick Snyder:

By six months, three months?

Brett Ekart:

Yeah, this year...

Nick Snyder:

Six.

Brett Ekart:

I think this year.

Nick Snyder:

Okay.

Brett Ekart:

I mean, I think when I said $4.50, people thought that was crazy and I think that it's coming, we're pushing, we're not that far away from $4.50 and I don't see any reason why we don't get to five. I mean, I think we get to five before we get to two.

Nick Snyder:

Yeah, where's the top-top, been? Are we there?

Brett Ekart:

We're getting closer.

Nick Snyder:

Yeah.

Brett Ekart:

It was like $4.62 or three something like that.

Nick Snyder:

Is that what it was? I knew we weren't there. I knew it's got to be getting close.

Brett Ekart:

Yeah, we're pushing up. We're getting up there. Anything above $4.50 is, it's getting pretty high, which that just goes to show you I think as much as people want to talk down inflation or whatever, it's starting to creep in. Things are starting to... Obviously lumber, copper, steel...

Nick Snyder:

Yep.

Brett Ekart:

New steel anyways. So I think on the ferrous scrap side, we're going to get our day in the sun, I'm hoping. We just got to be patient.

Nick Snyder:

So any news for next month on ferrous?

Brett Ekart:

Nothing really. Everybody's kind of closed-lip so far, but with all the other base metals running pretty hard if they continue that strong this week. I just have a hard time believing that they can really drop the price. I mean, I've been wrong before, but the biggest thing I think is the other world economies haven't all the way opened up yet. I mean, China's is going strong. You're starting to see some more aggressive quotes for export scrap going into China. Turkey is going to try and keep the market beat down as much as they can. But I really believe when all the other economies open back up, man, this thing is like a kindling box. That thing is just ready to light. And when it goes, I'm not saying it's going to last a long time, but we're going to get a hard run, I think.

Nick Snyder:

It will be a fun run when we go through it. I mean, so if anyone's sitting on copper, I'd get ahold of your local scrap buyer.

Brett Ekart:

Yeah, exactly. I mean, if you've got copper, I think right now it's not a bad time to move it. We sold some material early. And when I say we, I did. I sold some material early in the month. Sold some material about a week ago and just watched it keep going. So I never feel bad. As much as I love talking shit to myself. I like it at the top of the market. But the reality of it is if you aim for the stars and hit the top of the mountain, and you don't necessarily get the peak-peak-peak, as long as you're selling and you're making money doing it, then there's not much a guy can complain about.

Nick Snyder:

And if you're selling, I mean, as a scrap company, we got to just follow the market. We can't follow the sale all the time.

Brett Ekart:

Exactly.

Nick Snyder:

Never really. You got to just stick with the market. So if we're buying at the market, you're selling at the market, and we're close, in the long run, we're going to come out okay.

Brett Ekart:

And it's markets like this where the hedge can go against you. And as much as people like to push the hedge, unless you just are sitting on a bunch of material, you can't get through your system and get a sale off. That's probably when a guy would want to hedge, give yourself some production time. But remember if you're hedging early you're missing out on a lot of this upside. So just keep that in mind.

Nick Snyder:

It's like anything. There are plus and minuses to everything. So.

Brett Ekart:

Yeah. You definitely protect the downside, but you're missing out on the upside, so.

Nick Snyder:

Yep. All right. Well, next week we'll be in a new month and we'll let everyone know where what ferrous is doing.

Brett Ekart:

Yes, sir. Have a great week, everybody.

Nick Snyder:

Thanks.