foreign theme on Mondays it is Halloween Monday maybe till Halloween Dracula the blood the streets are bloody they were Bloody Friday they’re bloody today I mean copper is getting whacked nickels getting whacked aluminum I just could go down the line yeah I mean just keep going yeah Platinum played him so this morning I woke up there was like I’m overly optimistic we always say that and I I like being that way I took a screenshot of it because I was going to say oh it’s like Christmas because all the precious metals were green all of them yeah and now they’re all red so everything’s red so what’s going on Brett tell us your insights I wish I knew the answer other than I mean it’s pretty obvious I mean the feds raised the rate last last week that whacked the markets the dollar is on an absolute tear against every other currency available is that what’s Bailey doing it because I read like The you’re big and whack like everything’s just yeah all that and it doesn’t it does not help the world cause and the Commodities that China is in rough shape right

now um and at least rough shape compared to what they’ve been in the recent past um I think that more than anything it’s a currency thing I mean and it’s you know people project commodities prices off of you know or they value Commodities off of future projections like what’s the demand gonna be for these um Commodities in a recessionary environment right and so if you are predicting a recession or if you’re saying we’re already in one or one a big one’s coming there’s no reason to load up on copper nickel aluminum like there just isn’t right not knowing they’re not taking into consideration that maybe there’s going to be a you know like I talked to that to John gross and you know the copper you know the guru and he’s like you know inventory is at you know record lows which that’s kind of counterintuitive you know the old Supply demand curve like what drives to me is Drive the price right yeah but there’s also so many other extenuating circumstances when it comes to currencies you know projected future demand I mean and the list goes on and on right so aluminum

for example like what hurts aluminum pricing right now is there’s no real consumption on the European side so that’s leaving a lot of aluminum inventory that has to stay domestic now well domestic meals anybody that’s out there selling aluminum lately they’re like yeah we can take it for November December delivery or we can take it for October but the spread is going to be super wide right because basically they’re just saying we’ll take it but the price is going to be and because we know we can because if you don’t sell it to me I got five guys they’re gonna call me later today they’re willing to sell me the same stuff right so it’s that now that’s where the actual Supply demand comes in at the supply of available aluminum available ferrous you know steel available whatever it takes a while for that inventory number to catch up it takes a while for the demand to catch up and I feel like that that could be the tail of the tape for the rest of the year is if there’s more Supply available to the consuming markets right the aluminum smelters the copper

smelters the whatever the the steel mills there’s more Supply available than what they really need on the demand side that price is going to go there’s only one way for that thing to go right so it still boils down to supply and demand it does it does unlike the on basically the micro like you know the the geographically driven right like for us we basically have two steel mills that we can sell to right two different companies and then we have the export Market that we can move and we’re close enough to the coast it does so we can push into the export Market or we can sell domestically and so that is sometimes an advantage if the export Market is hot it’s sometimes an advantage if you know the domestic steel markets but sometimes it’s a you know a disadvantage because you could be in the Midwest and have like access to say five steel mills or six steel mills right but you don’t have access to the export market so it’s it’s always uh it’s very geographically driven on the commodity side not on especially on the ferris side non-fair is

not as much because it travels a little bit farther a little easier you know there’s bigger dollars in play per Lo on a per load basis like a company like us we can afford because of the price per pound we can afford to ship it all the way to the east coast if we need to if the price makes sense because the price makes sense there’s more value in it on a per load basis right so you can it travels it travels farther easier um so it’s it’s it’s it’s very geographically driven and I think that right now it’s just a lot of you know recession talk you know it’s a lot of you know Russia in Ukraine still play of you know from a macro economic yeah it still plays a role in people’s consciousness of like do I want to get long Commodities right now or not and you and anybody that that’s in our industry knows that there’s a lot of hedge funds a lot of you know Futures Traders out there that control much more the market than us small medium and even large scrap processors do like the Futures

markets and that’s what’s really driving these these prices right we’re just kind of uh at the behest of what you know suit were dealt sometimes it’s a you know it’s good and sometimes it it’s good soup and sometimes it’s truly soup we’re all swimming we’re all swimming in the same shitty water yeah exactly right exactly which at the end of the day that’s a good thing right like yeah glass half full we’re not facing anything that our competitors aren’t facing today I mean you could nobody’s going to be out there paying crazy over the market unless they just feel like they’ve got cash they want to deploy and belong a certain commodity but generally speaking like we’re all in the same Market we’re all you know we’re all trying to buy against and sell against the same pricing so exactly there’s no real Secrets out there anymore about where material is going or what the price should be and what that does for the customer the people selling the material to the scrap yard that makes all the scrap yards we’re playing off the same rules so you’re still getting the best price out

there so one of our good cat cat customers that we used to have used to always say that because he would sell to us good markets bad markets because he’s dealing with it too you know it just adjusting your price you know we’ll always give the best price we can but right now we’re in some shitty water yeah but so the FED they raised it 0.75 right so that’s what they projected though yeah they did but they’re they but they also did came out and said probably expect another one right okay October November so that wasn’t expected is that what well you know but I mean I think it was but when once they confirmed it it was like all right all right hang on okay the current you know basically that just that just basically gave the dollar more strength and gave it more of a boost for the you know at least the short-term future and saying okay like dollar strength isn’t going away which puts a lid on Commodities pricing and I don’t care whether that’s Gold Silver Platinum Palladium copper nickel lead aluminum it doesn’t matter like you

know look at look at fuel I did a podcast with Chad elderbrock at the beginning of the month yeah and I was like there’s no way in my opinion if I think there’s only one way for for diesel and for oil to go right up and all it’s done is went is went down since I said that right so there’s a reason why I’m in the scrap business not in the Futures Trading business because I’d be the lost my ass more than I already have in the scrap business well we’ll keep reporting what we’re seeing and you know we’ll see where it goes um I mean we’re going to be in winter here before we know it and then that changes the flow at all these yards too yeah it’s gonna be it’s going to be an interesting uh fall and winter this year and we’ll it’s it’s going to shake some things loose I think all right well thank you everybody have a fantastic week have a great week