Podcast Transcription: Metal Monday Ep. 7 - 2.15.2021

Updated: May 5

Hosts, Nick Snyder and Brett Ekart, talk about their weekend shenanigans and the scrap market prices for the week of February 15, 2021.

Nick:

All right. Welcome, everybody. We are in the middle of February. It is February 15th. We are doing another zoom Metal Monday. How are you doing Brett?


Brett:

I'm good, man. I'm good. I can't complain, just I'm over in Eastern Idaho, checking out what we have for material in the yards and saying, "Hi," and that's what it is.


Nick:

Well, everyone, that listens to this that's not from Idaho: We got some snow finally. We haven't got snow all year.


Brett:

Officially upon us.


Nick:

And I don't see how much snow we got at least in Caldwell and Boise, but it looked like eight to 10 inches somewhere if I had to guess.


Brett:

Yeah.


Nick:

And then it was awesome. Me and the girls and my nephews are in town and we built a snowman. They went sledding. We got this big dirt pile behind her house, where they're going to do some more land development. So we went sledding. And we just haven't done any of that all year. We haven't even gone...


Brett:

It's been crazy. It's been a really weird, weird winter where it's almost felt like spring this whole winter. And then finally, now we're actually getting that weather.


Nick:

Yeah. Yep, yep. So what does that do? That weather, what does that do to the markets, Brett?


Brett:

I don't know, with the markets, we're moving around this morning. Obviously the precious metals, platinum, palladium, silver we're up. Copper was up again four cents last time I checked.


Nick:

Yeah, yeah.


Brett:

It was kind of hovering in that range.


Nick:

It's still up four. I mean, we're at our highest we've been since 2012 on copper, which is crazy.


Brett:

What is it that long? To me, I don't know. I really do think that the base metals are going to keep coming up. I think that we're going to see some big pricing moves in next few months on some of the ferrous items. I think we're going to get back what we lost in February. It may take us a couple of months to get it back, maybe it won't. But I feel like this winter is really locking up scrap flow. It locks up flow into your yards for sure. But it locks up your ability to transport what you have to the steel mills, to the export yards, to the shredders. It really hampers your ability to get out and do a job across Midwest. I mean, Texas everywhere for the most part in the US is facing the same winter issues that we are. So I think it's going to be interesting to see if the steel mills get caught a little bit short this month or not. You never know.


Nick:

So one thing I've read is some people think we're in the beginning of a supercycle.


Brett:

Yeah.


Nick:

Do you believe we're at the beginning of a supercycle where we're going to see things go absolutely bananas, like maybe $4.50 copper, maybe north of four at least?


Brett:

I believe you can't print the amount of money we've been printing... I believe you can't lock down the way we've been locked down as a country for a year and not create some pent-up demand for building infrastructure, not create inflation of some sort, whether it be a hyperinflation or regular inflation.


Brett:

I just have a hard time in my gut thinking you can do all that and not see commodities prices go higher. Everything in me says that commodity prices are going higher. And so I have a hard time, not thinking of supercycle, hyperinflation, all that shit. It's hard to know until you're in the middle of it.


Nick:

Yeah.


Brett:

But I think we're going to see better pricing. I mean, maybe it's just better pricing because our purchasing power is going down. But like we've said before, we're not afraid to put scrap in our yard right now.


Brett:

We feel like that's a good investment. At the end of the day, if you're cash-flush and you're not worried about making payroll, you're not worried about keeping the lights on or whatever else. What else are you going to bet on right now? Are you going to bet on putting your money in the bank at, shit 0% interest? Are you going to bank on, "If I can buy scrap right now in a tough market or whatever, I'm going to put scrap on the ground. I mean, at least I can look at it. At least I feel like there's something there."


Nick:

When was our last supercycle?


Brett:

2012 if I get technical without, I know it was getting ready for the Olympics and they really bought hard for a while and really pushed it. 2012 - 13 is when you've seen $4.50 copper.


Nick:

Yeah.


Brett:

So, good iron pricing. But on the ferrous side, it really was 2008 is when you saw peak ferrous pricing. Definitely good copper pricing, but not what you saw in 2013.


Nick:

Yeah. Yeah, for sure. Well, I mean, we'll have to see if we're in a supercycle. I hope we are. I'd love to see some good prices. We love to share that with our customers because they've been loyal. And it's time to reward all those guys and get them some killer prices.


Brett:

I agree, man. What goes around, comes around. Just keep your head down and keep pounding. That's all we do. Right?


Nick:

All right. All right, Brett. Safe travels on the rest of your trip.


Brett:

Appreciate it.


Nick:

Thanks.

2 views0 comments