all right another metal monday and uh it’s funny how much can change in a week a week ago we were sitting here hey i think we found our new like where copper is going to be 450ish 460 maybe and then the storm just what happened what happened to let everyone know um never get too comfortable i guess i’ve had a lot of people hitting me up about hedging lately saying that uh maybe i should look into hedging and i i feel i i mean i see where they’re coming from and there’s some super smart people out there that that’s what they do and uh they’re much smarter than me because a lot of scrap yards most grandparents don’t hedge if i the people i think i think yeah like big processors do because they have so much a lot of brokerage brokerage houses you know hedge um we basically hedge with our physical inventory so i mean for us there’s opportunities where we could if hiding sites always 2020 where you maybe you should you could have showed a hedge you know at a certain number but they also if you do hedge you

kind of miss out on the upside exactly so it’s kind of that knife cuts both ways yeah and as long as you’re willing to stomach the l just like you are going to pat yourself on the back for the w then i think that depends on your volume depends on your business model depends on your cash flow there’s just so many everybody runs their business differently so i think you know every it’s it’s it’s all situational um but yeah last week the fomc came out and basically said they’re going to at some point start tapering the the helicopter money and maybe think about raising rates in 20 22 yeah 23. yeah yeah like that’s what’s weird to me i know that affected the market and so far away but it just shows you how global and how big trade i mean there was obviously china came out and said that they were going to curb um try and curb some of this inflation on their end with commodities prices food being one of them but also base metal commodities and open up the reserves which the last time they did that i think was

o5 on the copper so what does that mean does that mean they actually physically sell some material off they physically sit on xy i don’t know the the total amount but they sit on material a certain amount of times basically almost as their own inflation hedge right yeah as as because they’re such a con you know a manufacturing driven economy that slowly transition slowly transitioning or quickly transitioning depends on how you want to look at it into a consumer-based economy well because they still are they still lean very heavy manufacturing they sit on you know reserves of reserves of food reserves of base metals reserves of you know commodities in general so basically what they just came out and just said we’re going to release some reserves sell some reserves add some metal liquidity to the market and basically hope to stop the the price movement up and they did i mean they were vocal that was their plan but the reality of it is is if you’re trading and you’re selling off on that in my opinion this is 100 my opinion that i think you’re super short-sighted um because if

for right now the mantra is okay risk back on markets the stock market’s moving up big time this morning okay we don’t have to worry about inflation this and if you agree with that then you probably you know should sell you probably should exit you know some material if you if you’re long it probably is if you really believe that to be true i don’t believe that to be true i believe that it’s inflation you know that game is going to get sparked up again i mean you saw lumber get whacked last week we and i think that people are thinking the same thing you know with some of these other commodities but i don’t believe that i believe that you know this is a traders market right now i feel like the markets came off because it has been hot for the last you know sit 12 months and just like anything everything it’s pretty you know gets its you know it’s momentum trades and you never see just a constant up you know there’s always little dips in it and then then a lot of times the trend will go back up

and you just have to determine is this is the new trend down yeah there’s the new trend still up is a new trend sideways and you as a company you as a trader you as a you know individual electrician or plumber or whatever you have to decide is this uh a blip in the market or is this the new normal i mean it feels like a blip to me i mean and we saw so just so everyone that doesn’t follow it every day we saw a copper fall around 40 cents last week you know which is a big movement you know so all those good buys from the prior week went to you know so you’re like at best even on some of those buys and that’s that’s what we do for a living we’re used to it um but everything else was still fairly strong you know nickel dipped under eight but aluminum is still really strong i mean rhodium got its ass kicked too i guess that’s the other one copper and rhodium are the ones that really palladium and palladium yep platinum got whacked yeah um unless he played him up

92 bucks today you know things are kind of recovering we’ll just see how far it depends on how long term is your outlook i guess yeah and you know what did you buy it for yeah and that’s why as a company you got to find that sweet spot we want to take care of our customers but our business is our prices go up and our prices go down because we’re buying off the market today right so yeah and that’s what your your customer base has to understand is is if your price isn’t moving then you’re then whoever you’re selling to they’re not adjusting their price they’re not giving you the upside like they should um and i think that’s that’s the difference so we’re gonna we’re gonna move our prices up when the market’s up we’re moving down when it’s down and we’re gonna try and stay in tune with with uh where our prices should be well you know hopefully next week we get give everybody good news that everything went back up 30 cents 40 cents but we’ll have to wait and see yeah we’ll see what happens yeah we won’t hold

our breaths maybe 450 copper might be a reach again we’ll see yeah we’ll see i do still think we get to five all right thanks everybody see you