Junk Yard visit ....

dmhines · Apr 24, 2004

Stopped by a local yard that usually has lots of cars. To my surprise most of the yard has been cleaned out and they were actually crushing cars immediately as people trailered them in. Guess the recycled metal market is better than used parts ...

Some pics ....

http://homepage.mac.com/dmhines/PhotoAlbum54.html#

Wes · Apr 24, 2004

The price of scrap steel is up right now. These guys are just taking advantage of it...to our detriment.

elliot · Apr 24, 2004

I love junk yard pics but thats just so sad did the kill all of the mavs there ?

CACollo · Apr 24, 2004

My dad sent me this email a while back...bad news for us

This email is being sent to a variety of construction and development
industry people as an alert to an availability and pricing problem that we
are experiencing now and (it seems) will continue to experience for the next
several months. These notes from a recent meeting were passed on to me by
one of my members with the recommendation that we "spread the word". Please
feel free to distribute to your various associations and/or industry peers.

The Portland ASPE (American Society of Professional Estimators)
recently focused their monthly meeting on the current steel problems in the
industry.
The panel was made up of the following:

Lampros Steel (Large regional supplier of steel shapes), Pacific
Western Agency, Ferguson Waterworks (formally known as Familian NW)

Summary:
1) China is building 8 cities the size of Indianapolis In. by 2008 for
showcasing their country to the Olympics.

2) The "remelt" market has been essentially absorbed by China.

3) China is using 250 million tons/yr. which is wiping out the remelt
market that is only 210 million tons annual. The remaining steel is to be
made up obviously thru new production.

4) Tariffs were recently removed from foreign markets to be more
conducive to the free market. Some inferred this was to stop the east
European dumping but they haven't picked up production yet.

5) Virtually all of America's remelt leaves the country as our
industry had found that segment unprofitable.

6) China is expected to use 32% of the worlds supply of steel thru at
least 2010.

7) Other commodities are following suit, most notable is copper that
is traded in the open market. Since Cu is traded and mined, availability
does not seem to be a problem but cost is expected to only double by the end
of the year.

8) Coke production (used in steel production) is 3x historical costs
because of little prior demand for new (mined) steel and a fire at a
domestic plant.

9) China has been buying our old steel plants and sending them
overseas. The US had 37 producers, 1/2 have gone bankrupt.

10) The railroads are assessing huge surcharges on steel shipments,
and some shipping (Capesize) companies are assessing "operating charges" of
3-4x usual and customary costs for the same product previously handled.

11) Most of the US problems with cost and availability did not surface
until late 2003. Raw material pricing for virtually all steel commodities
have literally doubled since December 2003.

12) Availability will now be changing by limitations on mill runs,
with price locks (if even available) measured in days (usually single
digits).

13) With limited materials, suppliers will concentrate on their most
profitable and consistent clientele base. The mills will be very active in
allocations to the most desirable (read as profitable and easily marketable)
shapes. These suppliers are clear that the days of ordering and receiving
(buyers market) is gone.

14) Most of the trending references seem to be averaging 10-15%
MONTHLY increase at least thru the end of the year. This is based on current
supplies being almost exhausted in 4 months (12/03 -3/04) and expected rates
of "recovery".
Click to expand...

dmhines · Apr 24, 2004

Those pics were taking this morning - all those cars are currently there but in the vicinity of the crusher ... Actually my son and I stood there for a while watching them crush cars ... Volkswagen Beetles definitely crush the best!

Jerry · Apr 25, 2004

Were there any Mavs there with good small bumper setups? That one looks rusty but not beat up. Where is this yard?

dmhines · Apr 25, 2004

Jones Metal Recycling ... Braselton, Georgia ... I think ...

I take 369 East through Gainesville and make a right on Route 60. Take Route 60 all the way to the end. Make a left (no idea what road that is) and go about 5 miles to the yard ... can't miss it ...

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Junk Yard visit ....

dmhines Dixie Maverick Boy

Wes Maverick Police Dept.

elliot Member

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Junk Yard visit ....

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Wes Maverick Police Dept.

elliot Member

CACollo Member

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Jerry Member

dmhines Dixie Maverick Boy

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