Podcast Transcription: Metal Monday Ep. 5 - 2.1.2021

Updated: May 5

Hosts, Nick Snyder and Brett Ekart, talk about their weekend shenanigans and the scrap market prices for the week of February 1, 2021.

Nick:

Well, you guys know it, another Monday.


Brett:

Metal Monday, first February of 2021.


Nick:

We made it through the first month of 2021.


Brett:

Yeah. Good pricing. We had good pricing pretty much across the board, ferrous-wise, non-ferrous-wise. February is not shaping up to be as good on the ferrous side, but welcome to commodities business. Welcome to scrap business.


Nick:

We've been through it a hundred times, a thousand times for you, probably, and what goes up must come down and it kind of works other ways as well.


Brett:

Yeah. We've been on both sides of it. I mean, when the market jumps, like it has been the last four months in a row, especially the last two months, you can always expect them to try- When I say them, the exporters, the split domestic steel mills to try and take some gas out of it, rightfully so. If I was in their position, I would be trying to do the same. I don't necessarily agree that this is the right time to do it now that you've finally kind of got the flows going, but that's their business and that's not ours.


Nick:

So next week you think you'll get all the contracts hammered out?


Brett:

I think this week. I think people were going to try to lock it down this week. I think when the market's descending going down, I think people will try and lock their tons up early, as far as on the sales side. At least that's the general trend. When the market's moving up, people are slow to lock in the tons because they want to just see where it's going to go before they commit to a bunch of tons. And I think people would, generally speaking, will try and hurry up and get tons booked for this month so they know where they're going to be at in anticipation that maybe that the slide gets worse. I don't know. I think it just depends on where you're selling to and the relationships you have.


Nick:

Last week we saw a lot of crazy action with Reddit. We saw crazy action with GameStop. I think everyone kind of heard about that. What I don't even understand it really, seems like it got a lot of hacker-type dudes got on there and just blew up the market. Do you see any effects in the markets because of that in our market?


Brett:

You know what? There's been a lot of attention paid to silver in the last few days. Silver was one of the best performing commodities in 2020. It performed better than any other commodity as a matter of fact. So, the interest in silver is is bringing more attention to commodities, which if you notice all your precious metals this morning, silver was up at one point. I mean it touched 30 bucks and climbed over. So just the volatility of what that's going to bring to the attention on commodities, I think will be interesting.


Brett:

When you're watching platinum up 50 bucks, palladium was up 20, rhodium was up another 500, gold got a little bit of love. Silver is obviously the market's pace-setter this morning. But I was having a conversation this morning on my way into work with one of my buddies I do a bunch of business with. I just was telling him, I'm like, hey, the silver market is what it is. I'm pretty heavily invested in silver, but I'm more interested to see what does it bring to the other commodities, attention-wise. I think that's what I like about this deal is I think it's going to put commodities on the forefront of people's minds again. At least for temporarily. We'll see how long it lasts, but until the next big short opportunity comes along. But I think it sets up well.


Nick:

Okay. Well, cool. Anything else to add Brett?


Brett:

That's it, man. Just have a great week and get out there and keep making it happen.


Nick:

All right. Thank you everybody.


Brett:

Take care.

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