Podcast Transcription: Metal Monday Ep. 6 - 2.8.2021

Updated: May 5

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

Nick:

All right. Welcome everybody, sitting here with Brett, another Metal Monday .


Brett:

Morning Bud, the GOAT took care of business.


Nick:

He pulled it off, man. My wife is a huge diehard Tampa Bay fan. So she's had a lot of bad years. And I was so happy for her because the GOAT, just put on a performance man.


Brett:

Dude, he gets everybody around him to play better. I think people kind of wrote, and I was probably one of them. He kind of wrote them off like early in the season. They were losing some games, but Tom Brady knows that it takes time to get shit done and it's not just going to happen overnight. So I think by him just sticking with the process, and keep grinding, and one win at a time. All those old cliche sayings are super true. From his standpoint, he just kept them going in the season and by the time the playoffs rolled around, they were sharp man.


Nick:

So I'm always fascinated by guys like him, like LeBron James, I'm fascinated by those guys that are on the top of the game and just stay there. It's a true testament to their, take their health.


Brett:

Yup, they take care of their body.


Nick:

They take care of their body, they put in the work. One thing I always think about, it's an article that Bill Simmons wrote about Tracy McGrady. He's one of the most talented players ever. It was just talent. He didn't have necessarily the work ethic that a Michael Jordan has. That's the variable that would make a guy a GOAT. Tony Romo is a good example, that guy is so talented, but in the off season he just golfed all off season while Tom Brady's working. And then you can see the results, man.


Brett:

Whatever the industry you're in sports, scrap, trucking, talent will get you in the door and it will spit you back out just as quick if you don't have the fire to stick with it. So, that being said, we'll see what happens next year. He'll be back. I'd like to see him win another one just to spit and Bill Belichick's eye.


Nick:

Dude, I think Gary V was talking about Belichick this weekend. He did one of his overrated, underrated. And he was talking about Belichick, does this tarnish his legacy?


Brett:

I don't know. It takes 2 to tango.


Nick:

If Belichick goes back to the playoffs. That's what Gary V was talking about and what a Brady wins two more Super bowls, three more Super Bowls?


Brett:

Yeah. Then it's, that's a different deal. We'll see. What do you think about scrap? What do you think, so what do you see this morning?


Nick:

Well, dude, it started Friday. You saw a copper take a run and it's still this, we're almost $3.65 again.


Brett:

Yeah. We are $3.65. Yeah. All-day.


Nick:

Yeah. So $3.65, I could see it going back to, get him back to $3.70. Rhodium is just going crazy. Which is just, you were just, before we started recording, you were saying, you're hearing 28.


Brett:

I heard 28. People are talking they think It can get to 28. If That does happen. That's bananas.


Nick:

What do you think? So you posted an article on your LinkedIn page about China opening the door to buying a lot of scrap from everyone again. Do you think that is translated to some of these market hikes?


Brett:

I think it's going to take time, man. But I think just the presence of China wanting to be involved is big. So that's, I think got some material bought early in this, in late 2020, early 2021 is for some of these importers of US scrap to pull the trigger and buy, maybe pushing the price pretty high, pretty quick. But I'm a firm believer, and I keep preaching this, but I ain't going to get off my soapbox. If you're going to be sitting on anything in this wave of mass money printing, I don't think you're going to be wrong to sit on hard assets, commodities. And I don't care if it's corn or whatever. Obviously, if it's perishable, that's a different thing. But the nice thing about scrap: you buy it, lay on the ground.


Brett:

That shit ain't going to rot in a week, or a month. You can put it on the ground, be comfortable in the money you've spent if you bought it right. Because I really think that this market is just getting started. The commodities in general, especially base metals. Going into '21 and '22, there's going to be some serious expansion. There's going to be some serious catching up. They're about to put an infrastructure bill on, it's going to happen. Whether we like it or not, that's a whole different story, whether we can afford it or not is a whole different story, but I really believe that commodities business, whether it's copper, whether it's silver, any of your base metals, be ready. I think this rocket ship was just getting fired up.


Nick:

So a week ago we didn't have our firm ferrous numbers in and we did, we anticipated a down, market down 60.


Brett:

Yep, Anywhere from 30 to 60, depending on where you're going. Some places wanting to quote down 50.


Nick:

That seems nationwide, we jumped on a clubhouse call with Jake Bronstein. He has the same feeling you do. He thinks it's bullshit that it's going down. And he's just going to sit on a lot of tons. He's got to ship some, it's the same with us. We got to ship some. But do you anticipate March to have a bounce-back?


Brett:

Yeah. And if it's not March, I think it's April, and if it's not April, I think it's May. It's coming yeah, and I really firmly believe that. And I want to get this on the table though. You're going to ship to people that take care of you in the ups and the downs, right? The people that don't- that only want to do business when it's favorable for them, those aren't the people that you're going to try and reciprocate business with. You want to reciprocate business with people that are fair to you on both sides of the triangle, right?


Nick:

Well, that's where their loyalty comes in.


Brett:

The upside, the downside, and the in-between side. Those are the people that you're going to do business with or that I choose to do business with. So, you have to take that into consideration when you're considering selling or moving product. Obviously, you have to consider cash flow and what makes the most sense. But the reality of it is we're in the commodities business, the prices go up, the prices go down and you got to pick and choose your spots. And in my humble opinion, I think that if you're sitting on scrap today, you're not going to be in a bad spot, a week from now, a month from now, a year from now.


Nick:

Yeah. And that's where I'm always just preaching this to our customers. The loyalty, the overall value. I always tell them, hey, someone might beat our price that month, but I guarantee we're going to bring more value to the table because all the other components, like we're going to be around when the market goes to shit or I'll help you get an emergency loadout, if you need to get it off your books. We did that for one of our big manufacturers. So we have a big pile of cardboard boxes that made a lot of people angry. But we did that when, I don't think any recycler would have done that in a day's notice, we pulled that off. because we have an awesome team. So, I think it's just all kind of connected man, and I've always, that's what I love about this industry, the relationships, the loyalty, and the grind.


Brett:

Consistency wins.


Nick:

All right. Well, we'll see everybody in a week.


Brett:

Have a great day.


Nick:

Thanks.

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