Addressing the price paid for scrap: Scrap prices rose and as they
reached, say $150 per ton for steel, I started scrapping. It is hard
to nail an exact number because there are different kinds of steel
scrap, e.g. an electric forklift won't bring as much as punchings, and
larger quantities demand higher prices. I heard from several people
that scrap would reach $300 by next month and I should wait. Well, I
told them that when the price of scrap is so high that people are
scrapping machinery and equipment which is in working condition, it
won't go much higher. The price rises to increase the supply. Once
the scrap is flowing at capacity it levels off, and as demand is
filled it falls. Scrap prices have just started to fall, peaking at
about $200. I understand that another factor at work is that
scrapyards in the northen states start moving alot of material in the
spring.
Paul