Metal Monday #42 with Nick and Brett

12/14/2020 Brett flips the scrip on Nick this week and he asks him some questions pertaining the market and the overall potential supply out there.

Transcription

welcome everybody it is december 14th i’m sitting here with brett on another metal monday good morning sir how was your weekend it was great man it was it was busy got a lot of christmas shopping shopping done went around like to the craziness is crazy i really feel our valley has grown so much that the stores don’t quite know how to order enough stuff i agree i really think that i mean which is all good which is great for our valley like the growth is great i think yeah definitely uh it’s great for business it’s great for a lot of things maybe a little tougher on uh quality of living with more people but the reality of it is is if you don’t want to live around people then move yep absolutely i mean stop don’t be don’t about it don’t complain about it move what’s uh going on scrap world here at united metals we’re gonna flip the script on you today you tell me what’s going on at united metals at united metals we have been so busy around here people are just selling we just got some crazy copper loads coming

in people kind of hold on to it um it’s a pricing thing you think it’s the time of year you know sometimes we see big big volumes move at the end of the year i think it’s mainly pricing i mean a lot of delta hit yeah a lot of electricians will hold on to stuff to sell at this time of year which is great great timing for them yeah they’ll sell it to bonus had a lot of their guys it was great to see that it’s great to see that they’ll get more money for their scrap and then the employees will get bigger christmas bonuses yeah so with combination that combination of our new service copper reclaim running around that service has been huge with how busy our valley is with the building yeah in the ferris market too that thing’s killing it yeah so you’re seeing a lot of that open up we i mean we see a lot of people just hauling some stuff they didn’t have to move doing a little bit more mobile jobs you know some more wrecking some some landscape or some landfill bailing yeah you know even

though the winter kind of will slow that down pricing will kind of keep keep that that deal going we’ve um yeah we’ve got two landfill jobs set up we’ve got enough crush jobs to keep us busy for a few months you know so hoping the price holds on that deal and you know we’ll knock them out take care of our customers take care of our yards and just it’s great to see it this busy on the commercial side on the job side this time of year because really i think in combination that too if people are playing kind of catch-up mode i think like you know we had that march april area where the lockdown hit the virus really started and people didn’t know what to do so a lot of jobs got paused yeah and now we just got so many jobs and you know really like the trailers are all being used which i love we’re thankful we’re super appreciative for the opportunity to just go help our customers take care of our customers i mean did they trust us to be the company that brings them the bins and the

roll-offs and the trailers and do the work the crush jobs the bail jobs i mean i feel like you know it’s a reputation thing but it’s something we take a ton of pride in and it’s something that we um we’ve worked hard for a long time a lot of years put in a lot of blood sweat and tears to make sure we take care of our customers and hopefully when the market turns like this and goes up then a lot of those years and sweat and you know just our appreciation for our customers actually is is a benefit for everybody and it’s a long-term game like for both parties uh i’ve always said that to any of our our customers that stick around if they stick with us like they’ll always come out the long term on top because we’re going to take care of them year in year out you know um because it’s easy to swoop in there and just really go in there with a huge number and just dive in but if you can really find people you trust on and it works a two-way street it

works both ways yeah you’ve got to lower the price you’ve got to raise the price yeah you can’t just always lower and never raise i mean it kind of that knife cuts both ways it’s got to go up it’s got to go down and sometimes you’re chasing the market sometimes you’re you’re trying not to drop it as fast as you’re getting dropped but it’s it’s a consistency game are you feeling like a curiosity what are you feeling like the the volume of ferrous scrap is out there are you seeing like lack of bare scrap even though the price is pretty good are you are you seeing a less fair scrap out there which everybody talks about that’s kind of the reason why these markets are being driven hard i think they’re definitely a lot of it got kind of dried up way back you know what 08 2012 a lot of that stockpile dried up so overall i don’t see a whole lot of it compared to years past but the same side of that i mean they’re still making cars they’re still piling cars there’s still you know farmers out there stacking equipment

this is not the big farm cleanups there used to be not as many i i guarantee nationwide though they’re out there they might be a little bit harder to find and a lot of farmers by nature they’re just pack rats you know they just keep it because they might need a part that that you can’t ever find you know yep so even i mean we deal with a lot of hops farms you know i mean it’s not a crazy amount but every few years you know 20 30 ton getting yanked out of there yeah and that’s one farm you know you add three four more of them in one little area i mean it all kind of adds up it just goes back to like just one big pool of scrap yeah but i mean what’s your opinion on that you drive around as much as i do no i just think there’s there’s just less material out there yeah i mean i really think that’s one of the reasons why the demand is pretty good and there’s just not as much material out there to be had more people fighting over you know

little more people fighting over less scrap margins are getting tighter um you know that’s just the nature of the beast and then welcome to the the scrap business yeah it seems like yeah you know it seems like every few years though some big job pops up that we had no idea like oh i didn’t even know that was out there yeah i guarantee that will happen again it’s like a christmas present for us yeah all right all right thanks guys thanks guys take care