# Scrap Life Podcast

**Host:** Brett Ehart

Welcome to another episode of Scrap Life, a podcast dedicated to hustlers, grinders, operators, and business owners in the scrap metal industry. I’m your host, Brett Ehart. Today, we are diving into the workings of the Ferris trade.

**Brett Ehart:** I want to know more about why Ferris does what it does because I feel like I’m lost in the weeds sometimes. But listening to you guys’ bulls versus bears and Chad’s emails, I feel like there’s so much value in that, not just for myself, but for everyone out there trying to learn more about why iron behaves the way it does.

**Speaker 1:** It’s really simple. Steel mills are always trying to screw the scrap guys.

**Brett:** That’s what it feels like. There’s an expression—when the steel mill is making money, the scrap guy does too. But we never make as much as you like. You feed us scraps here and there, right?

**Speaker 1:** Exactly. Steel mills buy scrap just like the scrap dealers do.

**Brett:** So, we’re in December now. It’s been a rough year for Iron. Can we do a quick recap of what Iron’s done this year?

**Speaker 2:** It’s been similar to last year. We saw a big run-up in winter when steel mills were low on inventory. They wanted higher cash conversion, meaning they lowered inventory for better cash flow. Two years ago, mills made a lot of money, so they kept cash high to make the stock look good this year.

**Speaker 1:** That’s right. It’s about how fast you convert sales into cash and how much money you make. Both are crucial, along with a promising future for stock prices.

**Brett:** Let’s discuss the weather a bit. How’s it impacting scrap flow?

**Speaker 2:** In some areas, the snow has slowed down operations, and it drastically affects scrap flow, much like how winter conditions put the brakes on everything.

**Brett:** Well, we haven’t seen much snow yet, but when it does snow, the impact is pretty significant.

**Speaker 1:** Weather’s a major factor. The first real cold week here drastically slowed everything down. It’s been tough for those experiencing their first retail winter. But they’ll adapt.

**Speaker 2:** December tends to be a good month as people clear out spaces for a little extra cash for the holidays. But it’s usually in the last week or so.

**Brett:** Speaking of markets, let’s talk about the macro perspective on Ferris.

**Speaker 2:** Winter feels like last year. We saw a first-quarter pop, slowly bled all year, seen similar patterns this year, especially with winter weather affecting regions like Iowa and Ohio.

**Brett:** It seems things like a long winter could further this trend. Do you think we’re headed for brighter days?

**Speaker 2:** I feel demand will increase, particularly with sheet and coil sides gaining traction. Warehouses see stretched lead times, indicating potential upcoming demand, perhaps in 2026.

**Brett:** We need renewed confidence for the economy to improve. We see downward trends in several areas, though.

**Speaker 1:** I remain optimistic for 2026, despite current conditions. Inflation might rise, but other economic indicators like decreased interest rates might restore faith.

**Speaker 2:** Next year could pose challenges, yet some opportunities could arise as geopolitical tensions evolve.

**Brett:** As we touched on steel mills earlier, let’s not forget emerging opportunities in tech and data center buildouts needing substantial resources.

**Speaker 1:** Indeed, these projects need significant materials, including concrete, steel, copper, and rare earth metals, providing opportunities for our industry.

**Brett:** Let’s ride this balanced supply-demand wave and see opportunities that could come from infrastructure and tech advancements.

**Closing Remarks:**

**Brett:** Whether it’s discussing the intricacies of the scrap industry or wider economic conditions, we aim to bring valuable insights. Subscribe if you enjoy our discussions, as feedback helps us grow.

**Speaker 1:** Thanks, everyone. Keep on hustling in the scrap life!