selling scrap steel

[randy41]

interesting. this is an Allcrop 72.
the local scrap buyer is paying $200/ton for steel. steel tubing is not very heavy so this may not be worth the trip.

 

[Iplayfarmer]

Question ...Why the high scrap prices ?? What is driving the price up. With a down economy, wouldn't material prices fall ?

My theories...
Energy prices are making it cheaper to recycle than to mine/refine.
High demand from developing countries like China, India, and Brazil. These countries are going through an industrial revolution like the US did a century ago.
All commodity prices are increasing.

 

[JB4310]

Question ...Why the high scrap prices ?? What is driving the price up. With a down economy, wouldn't material prices fall ?

My theories...
Energy prices are making it cheaper to recycle than to mine/refine.
High demand from developing countries like China, India, and Brazil. These countries are going through an industrial revolution like the US did a century ago.
All commodity prices are increasing.

I'm no Warren Buffet but unfortunately I believe it's the falling dollar.
All these commodities like gold and oil that are traded in dollars are going up in direct relation to the falling dollar.

I'm just not bright enough to know what comes first the chicken or the egg. Is the commodity really worth more or is the dollar really worth less?

I know, probably more of a "Front Porch" response

JB

 

[Iplayfarmer]

I'm no Warren Buffet but unfortunately I believe it's the falling dollar.
All these commodities like gold and oil that are traded in dollars are going up in direct relation to the falling dollar.

I'm just not bright enough to know what comes first the chicken or the egg. Is the commodity really worth more or is the dollar really worth less?

I know, probably more of a "Front Porch" response

JB

Regardless of the cause, I know my animals are getting more expensive to feed. My truck costs more to fill, and good, old machinery is getting harder to find (unless to look at the bottom of the pile at the scrap yard).

 

[Farmwithjunk]

Question ...Why the high scrap prices ?? What is driving the price up. With a down economy, wouldn't material prices fall ?

Same reasons why corn/soybean prices went way up.....A combination of 3rd party speculators, contrived "shortages", lack of intelligent leadership in Washington DC, and Chinese enjoying the fruits of a growing economy. The scrap we sell 'em at ridiculous prices will come back in the form of lead painted junk @ 10 times what we got out of the scrap. Then we'll mortgage a few more national parks in order to buy MORE junk.

In a nut shell....lack of fiscal responsibility.....

 

[two_bit_score]

Same reasons why corn/soybean prices went way up.....A combination of 3rd party speculators, contrived "shortages", lack of intelligent leadership in Washington DC, and Chinese enjoying the fruits of a growing economy. The scrap we sell 'em at ridiculous prices will come back in the form of lead painted junk @ 10 times what we got out of the scrap. Then we'll mortgage a few more national parks in order to buy MORE junk.

In a nut shell....lack of fiscal responsibility.....

Yes, Sir.

 

[Taylortractornut]

Ill get that number from the man thay sold his allcrop to them. THey refurbish them and sell them to smaller homestead types.

 

[YanmarFever]

Same reasons why corn/soybean prices went way up.....A combination of 3rd party speculators, contrived "shortages", lack of intelligent leadership in Washington DC, and Chinese enjoying the fruits of a growing economy. The scrap we sell 'em at ridiculous prices will come back in the form of lead painted junk @ 10 times what we got out of the scrap. Then we'll mortgage a few more national parks in order to buy MORE junk.

In a nut shell....lack of fiscal responsibility.....

How True!