It’s been super hard to figure out what’s going on with these markets lately. We had a tremendous upside for a few months with copper, non-ferrous, and iron prices, only to be followed by a nice steady period and then a swift kick in the butt...
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Without your input over the years, for the scrap metal industry, the iScrap App would not have been able to grow the way that it has. We've listened to your ideas, your advice and the things that you want with the newest iScrap App coming out in the summer of 2021. With price charts, better ways for you to report prices, learn about the markets and read different news alerts about the scrap metal industry. This app has been made for scrappers by scrappers and we can't wait for you to use it. Hey, scrappers, it's Tom from the iScrap App and today is Wednesday, which means it's time for our weekly report on YouTube and on Facebook. What are we going to talk about today? Market news, market updates, what you should expect expect to your scrap yard, and how you can make more money with your scrap - follow me Let's go talk scrap. Have questions about the scrap? Time to ask them now. Let's go. Hey Scrappers, iScrappers. It's Tom from the iScrap App. And today is Wednesday, June 23, 2021. We're so excited that you're joining us our weekly report. Hopefully you got to watch that new little clip of the new iScrap App that's coming out next few weeks or months; should definitely be here in July. We're hoping to have it sooner. But we're working on it as diligently as we can. But we're super excited for it. And before we start talking about scrap and what's happened over the last week, because it has been a lot over the last week, a couple things we always want you to remember, we have our podcast out Scrap You Later. We're talking about things from driver's licenses to problems at scrap yards to how you make more money with your scrap. So if you haven't listened to any of our podcasts yet, please subscribe through Spotify or the Apple podcast store. This way you can always be alerted when a new one is coming out. Now of course we want to talk about scrap all the time, but some of our Patreon supporters, they get a little extra piece of information every week, every month with videos and clips and little tidbits at the end of the week giving market recaps and you too can become a Patreon supporter. By becoming a Patreon supporter, you allow us to make more content for you. Share it out, help you make more money with your scrap. So hopefully you can support us today. Now scrappers here we are middle almost the end of June and we've had a really crazy couple of weeks. Now I say all the time that when the markets are up, it's always a great thing to sell. And I don't like to give advice. But I'll tell you, I do have my scrap yard. We've had two to three day material turnover. What does that mean? It comes in, and on day three, it's out. That means we don't hold inventory. So when people ask what my opinion is on holding scrap or not holding scrap, we don't hold it here. So when we had copper prices hitting all time record highs back in May, we were we were moving stuff as quickly as we can. And now last week, we saw a massive decrease. We talked about it briefly on Wednesday, but it unfortunately, it continued for a couple of days, we saw last week's market drop almost $0.50. And it's crazy because I was talking to my dad the other day, and he was telling me how he remembers copper prices being $0.45 per pound back in the mid 80s and 90s. And here it is in one week we've lost $0.50 in the market. So it really kind of puts things into a different perspective. Because even if you factor in inflation, from 1990 through today, over 30 years, you still wouldn't have $0.45 become $4 it's just crazy to see how the market has drastically changed, especially with new countries coming in consuming material looking for more commodities. It's really interesting to learn about these different events. Now with the market last week, we saw those markets dropped, like I said about $0.50 per pound. With the markets dropping $0.50 per pound we saw a massive sell off and scrap yards like my own dropped their prices further than we would anticipate on a regular day. Because when you lose $0.20 in one day, who knows what tomorrow is going to bring. Because more often than not history says the next day after that $0.20 drop, there's going to be another drop, maybe not another $0.20 or maybe even but scrap yards have to protect themselves when they're buying 1000s of pounds of material every single day because they don't want to lose some people are thinking that they're making all this money. But a $0.20 drop almost eliminates if not completely an employee eliminates 90% of the scrap yards in the country and in Canada that eliminates their margin. And one of the really important things that we've tried to really push out there, especially this year. is copper is a worldwide traded commodity. This is not something that's just here in the United States, the world needs copper. So it's not like we're looking at, you know, basketball jerseys or football jerseys where it might be a fanatic type of thing. These are commodities that are needed throughout the world for general infrastructure. We have supply chain disruptions, like are going on right now. We've been having people ask us questions all the time, what's going on with the market? What are things going to change? Why are they still fluctuating? Well is a reason you have COVID out there still countries in South America, are getting brutalized, Africa are getting hammered. The Middle East, India are still getting bludgeoned. So until we have those vaccines really rolling throughout the world with these different supply chain disruptions, it really upset the entire market as a whole. Last week, when the copper price dropped $0.50. That was because the Chinese reacted to so many problems going on. They saw a problem with the markets, they reacted by dropping the prices by in fluxing thousands of tons of copper that they had in reserve. by flooding the market and getting ready to flood the market with this additional tonnage, it drastically lowered the price. And one of the things that we saw was uncertainty, how many tons are they going to release? How quickly are they going to release it. But when you hear major news like that, which we did, I believe on Tuesday of last week, which would have been the what 15, you saw the reaction immediately start $0.20 down, $0.18 down, $0.05 down, no improvement. And that's because the uncertainty of where the market was going made it so we didn't know where to turn. So when the Chinese put that material out there, people had to wait a little bit. And on top of that, you had news coming from the United States like Federal Reserve Chairman Jerome Powell talking about interest rates which rattled the market, I mean, the stock market on Friday truck over 500 points. Now, just to show you how in stable things really are. On Monday, the stock market went up 550 points from Monday through right now, we've seen copper prices regain 20 cents a pound. So the $0.50 that we lost, we've already regained $0.20 of that. And that just shows how volatile the markets are. And by using the iScrap App, especially with the new iScrap App 2.0 that's out there, we want to help you make more money with your scrap. And you can do this by following us getting our notifications by signing up for free through the app, go into our national pricing page, which is updated daily with your prices that get reported. Now one of the reasons that we are building the new ice craft app is so you can put more prices in and know where the markets are and gives you the ability to learn where they are, where they were, but more importantly, where they're headed. We have a couple of questions about copper.Missy Quinn:
Not about copper, but do you think aluminum is going to go higher?Tom Buechel:
Yeah, so aluminum prices are really crazy with aluminum taking over copper, maybe not after today, but kind of as the second hottest commodity I believe oil would be the first one although some might beg to differ that crypto currencies are the new hot commodity even though I don't understand that whatsoever. Aluminum markets have been super super stable. They have been growing month over month and 2021 do I think they're going up? Sure do I think they're going up much further than they are now? Yeah, of course I do. When? I don't know when because right now when you look at sheet aluminum with the markets ranging in the $0.45-0.55 range. A year ago we were in the $0.22 range. So when you have something double of course not going to be the price height of copper at $3-4 a pound, sell what you have, you know and we say all the time I just told you five minutes ago, we don't hold material at Rockaway Recycling. We get it in we process and we get it out. Now my method isn't always the best method but it's one that ensures that we don't lose money and when you worked so hard to process your scrap why would you not want to protect yourself as best as possible especially with a market that's really strong right now. Now we've had a couple of aluminum podcasts that you can certainly tune in on you wouldn't become a you know follow and subscribe to our podcast scrap you later we featured aluminum and I believe the month of May or June which was a new remember. I think in May we featured it and not only do we talk about it for 20-25 minutes, we gave you different blog Examples and ways that you can make more money with it. So of course, use the iScrap App as a resource to learn more about these different tools. Another question.Missy Quinn:
Will the cat market recover?Tom Buechel:
Catalytic converter market is super, super crazy right now especially, you know, talking with the team that we have here, at RRCats.com but before we talk about the catalytic converter market, let me show you a short clip and I'll talk to you. At RRCats.com, we have everything that you need to sell your catalytic converters, we have an easy quoting system that you can send pictures or serial numbers to. We have the ability to get your cats graded within one business day, you'll get quick payment via PayPal or check. If you look at our Google reviews and our other online reviews, you will feel confident with team at RRCats.com to be able to purchase your catalytic converter. Time and time again, we look forward to earning your business at RRCats.com today. So the team at RRCats.com monitors the three precious metals that go into catalytic converters, rhodium, palladium and platinum extremely closely. Now we had such a run up in the rhodium prices nearing $30,000 an ounce, seen it retreat for the second time in two months from $28,000 down to $18,000 or so per ounce. Those are major market movers. But what we like about the team at RRCats.com of course, they're part of our team. But they're looking at these markets and trying to develop the trends where things are going by researching not only the price, but also the demand. Now Platinum place prices are down palladium prices are down and rhodium prices are down. And moving forward we have a new podcast that's going to be coming out soon talking about the EV market and how the EV market is going to really damper the catalytic converter market and it's gonna be interesting to read about it and listen to it and hear your opinions. But right now, cat prices are still very strong. There's a very common cat that we quote generally off of Silverados, serial number 25319109. And let me give you an idea of how it's ranged over the last two months. Today is about the low in the market averaging $115-125. The high was about $155-260 per cat. Now you're saying yourself, Tom, that's only a $35 difference. But I'd like you to look at it differently. It's a percentage difference of 35%. 35% change in anything is worth noting and taking advantage of. And that's why the team at RRCats.com gives you seven business days from the day you get your quote, to sending your cat in. So even if the market does have a big drop, you're not going to get hit along the process. And was really cool that it was talking to a customer earlier today through RRCats.com. And he said hey, if the market goes up, are you going to pay me more? And I repurposed the question and I sent him an answer saying if the market goes down, can we pay you less? Now of course it works. It works both ways market goes up the market goes down. But what's about the process at RRCats.com is that we lock a price in. If cool you don't like it, that's okay. But by locking it in, it gives you flexibility gives you a weekend movie two weekends to be able to ship your cat out. It gives you the knowledge that you're always going to get paid. And you can view so many 1000 Google reviews about the team at Rockwood Recycling and RRCats.com to show you how easy quick transparent and focus the team is to get a new page as quickly as possible. Now these cat markets are going crazy again, supply chain supply chain supply chain. And if you understand how supply chains work, you'll know that auto manufacturers are behind because of the global chip shortage which is due to COVID and shipping and yada yada yada. Let's throw that out and talk about other stuff. But it is a real thing but by following the prices through RRCats.com learni g about the markets throug the iScrap App will help you earn more about catalytic converters. Now listen, w have a cool giveaway in July a d August through our paid to o r Patreon supporters giving aw y DeWalt tools. We love DeWalt t ols. It's an awesome brand. It's reliable, they always back them elves up. And when you watc some of the videos that we'v seen online showing you how o use these tools, if anyt ing breaks on them DeWalt has an excellent program that helps ou either replace or fix your t ols so you can continue to mak more money with your scrap o if you want to get some free t ols become a Patreon suppor er today, where you'll be entere to have the ability to win so e of the DeWalt tools that w 'll be featuring and giving away in the next couple of mon hs. Now, the steel market has be n a little iffy and dicey lately as we've been watching it ver closely after the massiv run up that we've seen in the last two months. Now, iron o e prices have hit all time r cord highs, which have driven up some of the scrap steel rices. There's also a proble between Australia and the Ch nese and as many as many as you know, in Australia, they are on of the world's largest iron o e producers. And with some o the difficulties that they'd have been Chinese, it has caused some of the steel prices to go p. Now I talked to two differ nt traders in the first week o June right after Memori l Day, and they expected the pr ce of steel to go up anothe $30-60 a ton in the month of uly. Now over the last few weeks that narrative has changed a d people are now talking a out holding prices even or s ightly down $10 per ton for s many reasons from supply ch in to shipping to manufactu ing to delays in manufactu ing to not having enough pe ple to work in manufactu ing industries. And of course th oughout the worldwide markets, mpacting the steel prices, n t to mention oil prices ha e topped $72 a barrel with pred ctions that by Christmas six months almost the day from ow, you're going to see oil p ices go from $72-100 a barre for the first time in many year . Now some speculate th t that could because of e eryone coming back online, more cars on the road, while other pinions have talked about the cu rent administrati n. Maybe wanting to have prices o up where people get a little upset and try to buy EV vehic es with the green push they have their who's right and who's wron ? Well, that's an opinion based hing. Because both narrative could be correct as well as a d zen other either conspiracy nar atives or opinion narratives in y mind did the same thing at his point. I was talking to a f iend the other day saying you know, I just roll with the punch s the market is what the marke is it goes up it goes down. But what I do know is that people ge upset when oil goes up. Becau e when you start paying four bu ks, five bucks a gallon like ou friends in California are for gas, you're gonna feel tha pinch a little more than ever one else will. Now we watch t ese markets, whether it's a uminum, cats, gold, electron cs, copper, brass, ice w m terial, and for those of you t at don't know that acronym, see w insulated copper wire. A l these different things we watc closely. But you know what? We ant to know what you want to he r from us. Do you want to hear m re about copper? Do you want to hear more about ads? Do you wa t to hear more about aluminum stainless steel? rare alloys li e inconel we want to report to y u what you want us to talk abo t. So let us know whether it's through our podcasts or info at iScrap App send us messag s but looks like we have a ques ion we're going to answer right ow.Missy Quinn:
Where can I find board buyers?Tom Buechel:
Board buyers. Well if you're bored of your buyers use the iScrap App to find a scrap yard near you. But if you're looking for electronic buyers, well there's a few good options online. But one thing you want to do is first and foremost, ask your local scrapyard that you regularly work with, I know that most scrap yards aren't very strong in the electronics market. But by finding a scrap yard that's willing to either buy from you or give you someone that you could sell to you're going to be able to find some really good people in the area, although they're not as prevalent as regular non-ferrous, and steel buyers would be gold prices below $1,800 an ounce but still very strong was kind of crazy for those of you that do pay attention to cryptocurrency I read an article where they're starting to compare the price of bitcoin to the price of gold, and they're talking about Bitcoin becoming the new future and gold becoming a thing of the past where my opinion already has, but I don't know if crypto really is going to be there. I don't know. I don't know what I don't know. Right? We'd love to hear your opinions because I actually had someone at Rockaway Recycling asking us if we would start paying them in Bitcoin instead in instead of cash. That was a first so every day you learn or hear something new. But what we want to hear about is what you want us to talk about so scrappers, send us messages, comment below, listen to the podcast, let it spur ideas, sign up for our newsletters and everything scrap and metal related in so we can help you continue to make more money with your scrap scrappers. This is Tom from the iScrap App and today is Wednesday, June 23, 2021. We wish you a very happy holiday. As we have the Fourth of July coming up next week. We'll be busy. We'll still be doing our live broadcast. But still Hey, happy birthday America soon, iScrappers until next week. I'll scrap you later.