Posted by jimg.allentown on November 25, 2015 at 15:37:00 from (173.49.143.208):
In Reply to: Cause and effect posted by Geo-TH,In on November 25, 2015 at 14:59:27:
I'm sure that some clerk in a scrap yard has a real good handle on the business and why things are down now.....NOT!!! How about this? A guy goes into an auto parts store to buy a part for his car. He asks the counterman questions about installing said part. So, who is smarter? A $100/hour mechanic or this $8.00/hour parts clerk? It always amazes me that folks will ask advice of the LEAST QUALIFIED person. Scrap prices were almost artificially high because of the boom in manufacturing in China. That boom has passed, and prices, supply, demand, et al will settle down to realistic levels. A strong dollar means that the material that China buys from us costs them more. It also means that they get less from what they sell us. That certainly slows down their economy. In reality, it all comes down to economics 101. Supply vs. demand. Those folks holding on to their scrap will at some point cause a shortage of sorts and the prices will begin to rebound. BUT, if everybody that sees prices rise dumps their scrap all at once, it will make prices tank again. There does come a point when it is no longer economical to hold onto scrap waiting for higher prices.
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