I am not gonna lie, it’s good to be home after a long week in Vegas with all my industry peeps, well at least my liver is appreciative, and it does feel like I have been able to get some more sleep!
But what a great time, as it’s always so fun to catch up with friends and meet some new people along the way that I am sure will become friends down the road. For those of you who have had your head stuck in the mud, ISRI is now officially ReMA. The decision has been made that we are now the Recycled Materials Association (ReMA) and whether you like it or not, that’s on you… I tip my hat to ReMatter though, one hell of a prediction you guys made with your name you guys now look like twins… which is a good thing! 😉
Now that the week-long in person show is over and now we all can go back to the daily hustle. And if anybody knows how to grind/hustle it’s the team over at Sahd Metal Recycling aka Dumpster Talk. If I am honest, I can’t wait to get over to Pennsylvania and sit down in the dumpster with these guys, but before we could make that happen I was able to sit down with them in Vegas and pick their brains. There’s something special that Dan Sahd & Mike Sahd are building with these young hustlers, so my hat is off to them for giving these guys the opportunities to go create and build upon their visions.
We need more young people in this industry like Alex Vazquez and Todd Kauffman Jr., they bring a fire that reminds me of a slightly younger me… except they are ahead of where I was at their age. They get it, they are passionate about what they are doing and building, and you can feel their positive energy…. Enjoy the podcast, I know I did!
🐃 Bull Case 🚀
- Dow Jones Industrial Average: 📈 from 39,807 to 38,055 (Decrease by -4.4%)
- Pig Iron: 📈 from $462.50 to 472.50 (Increased by 2.2%)
- Shanghai Steel Rebar: 📈 $3323 to 3493 (Increase by 5.1%)
- Zorba: 📈 from $0.81 to $0.84 (Increased by 3.7%)
- Nickel: 📈 from 16,433 to 19,254 (Increased by 17.2%)
🐻 Bear Case 📉
- Dow Jones Industrial Average: 📈 from 39,807 to 38,055 (Decrease by -4.4%)
📌 Noteworthy Observations 🧐
Both the steel and ferrous market is anticipated to be flat so with nothing exciting to share I wanted to share this article I recently read about financial guru note that commodities may become the best-performing asset class over the next 20 years.
“In the coming years, I anticipate an unprecedented demand for commodities, as they are crucial for the current industrial revolution, ranging from the energy transition to the rise of artificial intelligence—the latter’s development is limited by the availability of energy, as the CEO of OpenAI has indicated. Whoever has the most energy available will win the AI race and that is a guarantee that the demand for raw materials will be unprecedented.”
I am not sure I buy everything they are saying, but it sure would be great if this is true.
What’s new in the world of aluminum you ask? Everything and nothing.
That may seem like a cop-out response but I assure you I’ll answer in greater detail. If you’ve been reading the past couple of months you may have noticed that I’m not bashful about giving my opinion on where things are headed. These past couple of months should also have highlighted that I’m not always correct. But hey, you can’t hit the shots you don’t take, right?
First for the “everything” part of the answer. Aluminum prices ended March at $1.22 but as soon as the calendar flipped to April they ran up to $1.38 before settling back a bit and finding some stability. The biggest catalyst for the upward momentum was new sanctions from the US and UK on Russia, namely that any Russian produced aluminum after 4/13/2024 would be banned from LME warehouses. This measure has been floated periodically since the Ukraine invasion but actually went into place mid-month. The truth of the matter is, nearly all primary aluminum moves directly from manufacturers to consumers without ever hitting an LME warehouse. But over the beginning part of 2024, an influx of Russian primary aluminum had been weighing on LME pricing. With this ban in place, Russia no longer has an infinite backstop of the LME warehouses to sell into. The intent was to limit Russia’s revenues from metals, forcing Russian metal to trade at a discount while also propelling the LME forward. A week later, Mexico announced tariffs on certain imported aluminum products to the tune of 20-35%, depending on the form. There is still a decent amount of uncertainty regarding how long these tariffs will be in place and what, if any, exemptions may exist… Read More
In December of 2022, we summarized the outlook for Platinum Group Metals (PGMs) which in many regards has not changed. Business conditions have not returned to pre-pandemic levels. Industrial demand for Platinum has remained robust but may be set to worsen. The war in Ukraine has restricted Palladium supplies. Operational challenges have reduced South African PGM output. Covid lockdowns in China did hit supply chains and cut vehicle output only to be compounded by an increase in adoption of electric and hybrid vehicles and a shift away from internal combustion engines (ICE), further weakening PGM demand and ICE vehicle sales. Around the world, auto recycling volumes, and subsequently, catalytic converter recycling volumes have contracted, more than we predicted with soaring vehicle prices and interest rates, leaving many vehicles on the road far longer than in the past… Read More.
Rebranding in the Era of “Green is the New Black”
Mark Twain once said, “When the end of the world comes, I want to be in Cincinnati because it’s always 20 years behind the times.”
Perhaps the metals and recycled materials industries are “Cincinnati”, the world changed 20 years ago and we are finally playing catch up because both of these industries have gone through several major rebrandings recently and we’re all left wondering… why?
To fully understand why these companies are choosing this marketing strategy, we have to look at what the definition of rebranding is.
According to The Economic Times, the definition of rebranding is “the process of changing the corporate image of an organization. It is a market strategy of giving a new name, symbol, or change in design for an already-established brand. The idea behind rebranding is to create a different identity for a brand, from its competitors, in the market.”
ISRI –> Recycled Materials Association (ReMA)
Timken Steel –> Metallus Inc.
Schnitzer Steel –> Radius Recycling
Especially interesting is the last part of the definition – competitors. The core goal of any good marketing campaign should be to stand out amongst your competitors – in this new world, that should involve a focus on green profits and a green workforce.
Speaking of green, in 2023, the green, social, sustainability, and sustainability-linked bond (GSSSB) market volumes totaled $1.3 trillion. In 2021, this space peaked with volumes at $1.8 trillion. These figures do not include the venture capital and private equipment investments made in the environmental, social and diversity (ESG) category during the same time frame.
In an industry where we are one of the original creators of circular economies utilizing recycled materials and lower carbon footprints, very little of these “green” dollars have flowed in our direction. A major hurdle to tapping into this ocean of funding is the marketing (or lack thereof) companies and our industries as a whole have utilized to attract such investments.
In addition, according to Deloitte, “Gen Z will soon surpass Millennials as the most populous generation on earth with more than one third of the world’s population counting themselves as Gen Zers.”
Why is this important for the rebrands? Gen Z are the emerging leaders of these companies, and the data overwhelmingly shows that they care about sustainability. They are a generation that soley grew up having accessible technology, and becuase of that, they don’t fall for the “traditional” marketing gimmicks either…
A recent John Hopkins University study on Gen Z in the workplace found that environmental, sustainable and social responsibility accountability is a high priority. They are driven to make a difference and seek employment at organizations that share similar values.
Are these rebrands starting to make sense? It is the future of the metals and recycled materials industries and these companies are getting a headstart.
ISRI says its rebrand to ReMA reflects the recycling industry’s modern values | APR 24 https://www.wastedive.com/news/rema-isri-name-change-recycling-industry-association-innovation-workforce/714820/
Ferrous market seeks a spark for ignition | APR 24 https://www.recyclingtoday.com/news/steel-ferrous-scrap-recycling-supply-demand-usa-turkey-india-bangladesh/
In “Tribe of Mentors,” Tim Ferriss delivers a treasure trove of wisdom from interviews with some of the most accomplished individuals across various industries and careers. As recyclers, we might not immediately see the relevance of advice from tech moguls, athletes, or artists, but Ferriss’s insights can be universally applied to anyone looking to elevate their skills.
Ferriss poses a simple yet important question to his mentors:
“What do you do when you feel overwhelmed or unfocused?”
The responses, ranging from practical habits to philosophical perspectives, provide a roadmap for navigating the challenges we all face in the recycling industry.
One of the book’s strengths lies in its diversity. From entrepreneurs to athletes, scientists to artists, each mentor brings something unique to the table, offering valuable insights that challenge conventional thinking and inspire innovation. By being able to tap into such a varied collection of voices, Ferriss ensures that every reader can find mentors whose experiences resonate with their own journey.
By surrounding yourself with a diverse tribe of mentors, peers, and collaborators, you can leverage collective wisdom to overcome obstacles and achieve your goals. Think “it takes a village”. While not every piece of advice may directly apply to the unique challenges of recycling, the underlying principles of resilience, adaptability, and continuous learning are universally understood. By embracing the mindset of a mentor, you can cultivate the skills and empathy necessary to lead your team and industry toward a more sustainable future.
Tribe of Mentors is more than just a collection of interviews; it’s a blueprint for success in recycling and beyond. By tapping into the wisdom of accomplished individuals from diverse backgrounds, Tim Ferriss offers a guide for personal and professional growth that will resonate with recyclers across the country.
Stay Scrappy,
We are in the thick of playoff season, and if you’re a hockey fan it’s really starting to heat up🔥! Fret not, the best kind of wine to sip when they’re getting a little chippy on the ice is a Cabernet Sauvignon. Paired with beef or poultry this would be the perfect drink to have at dinner before the game, and even better when you get to toss your hat on the ice in the third period. 🏒
Cheers,