Metal Monday Episode #48 with Nick and Brett, November 28th, 2022

It's a snowy Monday morning in Idaho and the guys are back to discuss base metal pricing and what could possibly be driving it.

Transcription

foreign welcome everybody we are here on a super fabulous Monday after Thanksgiving yes makes a little uh a little some sleepy eyes around the office you know yeah but we’re here we’re here baby and the market it’s not too bad today no copper is down three four cents yeah but I mean ultimately like it’s all the gyrations that are going on in the world they’re starting to you know like they always play their role on the Commodities side you know what the riots going on in China and yeah I read that Russia Ukraine deal is still kicking off and you know it’s just it’s always something and but ultimately going back to like what we said just all we control is what we buy around here and that we sell around here and what we do yeah how how tight are are our processes and how can we get it through the system I wish we had the power to control the markets but we don’t so we just monitor them but at least it’s not a blood filled all the way Monday like we have seen there here what could that China they’ll

do to the market what if things right I mean that’s really uncommon for that country to do that it just creates a lot of unrest and I think it just you know I think it you know I saw that it would maybe delay the invasion of Taiwan because they’re trying to deal with their own internal problems so it’s like not you know which I mean that’s one person’s opinion I don’t know what it what it does I mean obviously if they can’t get their economy going again um then they’re they’re a big consumer of aluminum copper you know they’re a big consumer of a lot of stuff so it seems like a commodity side so I mean obviously they’re a big exporter of other stuff but they kind of you know they’re they’re a big driver on the commodity side they’re one they’re the top one on copper usually yeah um so it feels like a lot of people have just been waiting for them to get back in the game it’s been the zero covid policies just been holding everything off um but I think everyone still thinks once they get back online

things are gonna just kind of kind of rebound but who knows yeah I don’t know I mean I think I think I’m telling our guys and gals that whatever volume you’re getting today you might just want to build your business around that type of volume for a while yeah the pricing that you’re getting today you might want to set your budget for 23 around the pricing that you’re getting today just because if there is upside then great you know take advantage of it capture it but if you’re building your business the future of your business on um equipment and whatever else anticipating you know maybe the the commodities prices we’ve had in 21 or 22 then I feel like you might be kind of you know over anticipating you know positivity now I still feel like we’re in a great industry in the fact that you know we’re producing material that people need to operate their daily lives you know the copper aluminum stainless steel iron you name it like that’s you know it’s got to come from somewhere right so the industry as a whole I feel good about pricing Ebbs and flows

we’ve had a good run the last couple years so I don’t necessarily anticipate you know those type of you know pricing but you know I anticipate the industry to still stay relatively you know in need and still relatively you know a big piece of the the puzzle you know as a whole across the world so you know I’m I’m optimistic on that front so Thursday we’re going to be in December already which is crazy you know we’re almost out of 2022. still soft for Ferris so you know I was talking to somebody in the Midwest and they were talking about sideways over there which isn’t the worst case scenario um I think everyone would take sideways I don’t think it’s the worst case scenario I I think it’s you know I think it’s at this point people are just looking for a sideways because that’s almost as good as an up because every every other month has been down down down you know so on this on the West Coast it’s going to depend on what the export situation looks like the strength of the dollar so I’m hoping for sideways ish but okay

if we get a little extra grade if we you know lose some I think that’s part of the game but I don’t I don’t think I see a big movement any direction you know you know I feel like that’s going to be kind of a sideways it seems like non-ferrous has really been sideways for a long time now yeah um and it’s still really good most markets are strong I mean all things considered yeah I mean compared to where I’ve seen it there’s no no complaints on that on that front so I I don’t know like I said I’m still optimistic on on our enemy and and we’re we’re fairly busy on a few other things so I’m just uh I’m looking forward to 23 Monday getting to work on Monday is good for me I’m I’m ready to do something let’s do it so here we go all right thank you everybody have a great week and uh we’ll see you next Monday