Metal Monday Episode #34 with Nick and Brett, August 22nd, 2022

It's another bloody Monday for markets of every industry. Join Brett and Nick as they discuss how things are shaping up towards the end of August and where the next month may lead.

Transcription

okay metal monday and it is another bloody one i said this a week ago and it’s like a it’s like groundhog day yeah this is this one it’s a rough one bill murray over here all red yeah red red red red rock i mean commodities yeah the pgms like you name crypto everything is just getting destroyed and i don’t know i mean you name it right now it is it could be the looming um recession you know could be china what is it what’s doing it today do you know do you know was it the uk inflation came out at like 18 euro the european like their inflation is just as bad as ours which is making which is creating a you know dollar strength right now as well because i mean people are predicting you know recessions across the world right and so the chinese went so as far as to lower their rate again in the face of everybody else raising their rates so they’re trying to spark some sort of uh you know motivation financial motivation to kind of get their economy going or keep it going or whatever depends on

what your stance is so i think it’s just a lot of uh negativity in the world right now some of it probably warranted some of it’s probably overestimated um but the use when they what’s the old saying like you can’t fight the fed or don’t fight the tape like right now the tape is you know is red and it feels like every every day it’s like a little bit redder right so i don’t know i mean that’s the way i read it this morning it’s monday it’s uh mondays can sometimes already be difficult and then when you open it up and you’re seeing that i mean i feel i feel for the people that are like oh man here we go i’ll say this we do business the same if it’s red or green we adjust our pricing accordingly we go out there and get what we can done but i am in a lot better mood when it’s green yeah i’m being honest yeah well no it’s it’s well at the end of the day you’re gonna sell what you’re gonna sell you’re gonna buy what you’re gonna buy it’s up to you

as a as an individual business owner in the recycling business you know doing what we do we obviously have like seven eight of the other businesses right so it just depends but we duke i mean you know we have to make decisions daily are we buying are we selling you know what we’re doing what we’re paying if we’re buying what we’re selling stuff for for selling but you know i’m not a seller every day so i watch the market i pay attention to trend i pay attention to which way it’s going but i’m not an everyday seller some days i am depends on you know how where i feel the market is or where it’s going or where it should be but it still it makes you feel a little bit better when you wake up and the market is in positive territory right or it’s trending in the right direction i do believe on the commodity side though that this is going to get overplayed it’s it’s still a supply crunch the the you know regardless of what you know the economy does as a whole we could see a dip and we

could see a dip for a little while but the numbers the inventories are still the same you know not it’s not gonna just stop right kovid i mean that they all damn near did the best they could to just stop the world right and even then it didn’t stop so even in a recessionary environment the world doesn’t just stop people don’t just stop eating they don’t stop consuming now the pace at which they do might be different if the people that were buying camp trailers and side side-by-sides and toys the pace of that might slow down right but work trucks but the reality of it is like you know dump trucks work trucks people doing business they still need it it’s needed it now do people go out and replace stuff as quick you know in a recessionary environment no they don’t because they’re going to try and squeeze out those last miles out of everything else right i’m still fairly bullish on the automotive sector right i i believe there’s been there’s going to be a lot of pent up demand in the automotive they’re trying to get make the switch

of going to electric vehicles or gas or diesel or whatever like that’s all debatable and switching from doing the chips in taiwan yeah which that would be a huge there’s a joke there’s i still i’m still bullish on the automotive sector um so i believe that you know aluminum steel pgms you know they still have they still have room are they going to get hammered if everything else gets hammered please believe because just like everything if it gets overbought it can get oversold so even if we do get whacked for a while a month eight months a year who knows you know they’re the they’re still gonna be the long play the long play is these materials are needed the inventories are low like they say in basketball or sports the numbers don’t lie you know that’s the truth like the inventories are low and the need’s there can that the need adjust with you know with a recession absolutely you know but like you said people to make our society function we still need these materials for our day-to-day lives and a lot of things people don’t see and don’t realize

that they need it you know so i think you know the manufacturing sector you know could dip and we’ll dip you know the commodities will dip but i think they come back i don’t think we’re in for a multi-year recession you know but i hope i hope we’re not yeah you know at the end of the day i mean that’s that’s part of the business that we’re in right i’m trying to figure out how to weather the storm trying to figure out how to deal with days like today or weeks like last week you know what i mean like it just it is what it is but i mean you can’t just take one day and say okay this is how it’s going to go or one week one month one year it is what it is you’ve just got to be diligent on your purchase side diligent on your taking care of your customers side diligent on making sure that you’re keeping stuff moving when the opportunity allows if you need the cash flow or figuring out which items you’re willing to take a little bit of risk on if you’re okay

on cash flow and making good trades making you know keeping your relationships taking care of your consumers people that get lost a lot in the scrap industry is people are out there trying to screw over their consumer to make that extra two three cents when the reality of it is like you need your consumer more than ever in the especially when especially when the material there’s a lot of that material exactly they’ll pick and choose they’re going to pick and choose what you know and do you want to be the guy that sent him a shitty load so you can make a few extra sense do you want to be the guy that that commits to something sends what you said you’re going to send stands behind your product i mean it’s all i mean it’s it’s it’s just kind of part of the way the the business is but especially on the commodities end where you need your consumers more than ever right you need your customers more than ever downturns are just a way for you to kind of maybe brush up on that and make sure you’re doing everything you can

to take care of both sides of the mm-hmm absolutely i mean it’s gonna make uh a lot of people like in our company that haven’t been here a whole long time gonna understand how important the things that we preach are you know taking care of your customer taking care of your consumer for production and you know we preach that all the time and and our team knows that but some of them have not seen a big downturn before so they might see how important that really is and they could really understand it so i know anyone listening to this that’s in the scrap game and has been doing it and is successful they know that how important that is as well exactly stay positive is what it is works out the way it’s supposed to work out i might lose my hundred dollar bet but i might not that was three hundred dollars a little a little confused how much we bet on that well we’ll have to go back and we got that we got the tip all right everybody have a great week keep your heads up keep it moving talk

to you there