Recycled 360 - March Edition

2024 is definitely shaping up to be a theme park of wild rides, and March plans to bring another roller coaster to the theme park. With ferrous markets on wobbly grounds, it become more important than ever to keep scrap moving to the steel mills and export facilities so it felt like a great time do a podcast with owners of ShearWorx who specialize in cutting/processing ferrous scrap for steel mills and scrap metal recycling companies throughout the United States… it’s go time out there everyone, spring is about to do its thing and if we get lucky a little material flow may start showing up at the facilities, so let’s go make it happen and finish the first quarter of the year strong!?

In 2020 I started building up some pretty large volumes of scrap in one of my yards, 5-6 thousand tons on the ground and I was losing ground!?

So I started cruising the Internet for answers… which if you know me, that means I started on LinkedIn looking for some help… And this is where I met Blake Dorsett , one of the owners of ShearWorx .?

Luckily, Blake and I hit it off after some discussions on price, capabilities, etc. so I decided to give him a shot and see what they could do.?

The rest is history, the Shearworx team absolutely fu**ing crushed (sheared) it for us and Blake and I became friends.?

I have been wanting to do this podcast for a while now and we finally were able to connect both of our hectic schedules.. Enjoy!?

For more information check out www.shear-worx.com

?? Mastering Market Trends: Month-to-Month Analysis ??

?? Bull Case ??

• Nickel is up ?? from $15,844 to $17,366 (+9.6%) ??.

?? Bear Case ??

• Pig iron is down ?? $475 to $460 / GT (-3.1%) ??.
• Steel HRC ex-works US Midwest domestic lead times ?? decreased from 4 to 3 weeks ???.
• US Midwest Domestic HRC Futures are down ?? from $960 to $795 (-17.2%).
• April HRC futures are lower at $788 / NT ??.
• Chinese steel rebar is down ?? 3,859 to 3,766 (-2.4%) ????.
• Turkey HMS (80:20) is down ?? $433 to $395 / MT (-8.8%) ????.

?? Noteworthy Observations ??

• February was unseasonably warm across the US ???, aiding scrap flows ??. With steel demand slowing ?? and shrinking lead times ??, scrap prices are expected to remain under pressure in March ??.

Another month in the books and closing in on the end of Q1, but the main narrative in the aluminum space remains unchanged with scrap scarcity reigning supreme. What was mostly isolated to a few segments as of last writing is being felt across nearly all areas of the aluminum scrap market today. Spec ingot makers, secondaries, billet makers, and flat rolled product consumers alike are finding scrap availability challenging. The million-dollar question is why?

One can point at a host of various reasons including seasonality, high interest rates, or winter storms (although this one’s becoming less defendable with the warm winter - aside from essentially one week). In reality, it’s likely a little bit of all of these that’s led to where we are. In the face of increasing costs of capital, and accustomed to the ability to find prompt material in the market, many consumers started 2024 with extremely low levels of inventory. Fears of an economic meltdown also helped drive historically empty pipelines. But as the new year progressed, economic and consumer collapse concerns have waned and there is light at the end of the interest rate tunnel – offering some stability and certainty to the markets. This triggered consumers to restock their finished goods inventories to not miss out on limited sales opportunities, right when scrap availability is at its tightest. Throw in some increased demand from export consumers, one massive January winter storm, and here we are. I do think it will take the better part of March for things to settle down but also sense that normalization is around the corner… Read More

This past month, I was the guest speaker on Recycled Materials Association (ReMA) ’s webinar “Unlock the Power of Networking and Foster Meaningful Relationships.”? As we quickly approach the world’s largest recycled materials conference, it seems appropriate to brush up on networking skills ahead of the big event.

Many people think of networking as in person, at a conference or over the phone.? In the webinar, I specifically discussed two forms of networking: in person and online.? With each form of networking, there were positives and negatives, tips and tricks for each one.

(The full webinar is available on ISRI.org today and will be made available as a Betts on the Future podcast episode later this year.)??

How does networking tie into marketing?? Marketing is shifting into a new personal connection space.? With people spending more time online, it is ever more important to establish meaningful connections in a way that is authentic to you.? In today’s digital age, it is increasingly becoming the first touch point for companies before meeting people in person for the first time.??

Consumers (and employees at B2B companies) want to know who is behind the logos of the companies they are doing business with.? Companies are recognizing this shift in marketing by spending millions on digital networking training for their employees.? In 2022, companies like Cisco trained its 84,000 employees on LinkedIn as a new form of marketing.? Why you may ask?? The majority of the social media sites prioritize personal accounts over business accounts in algorithms thus employees’ accounts will gain further reach in marketing.

It’s amazing how marketing and networking are easily connected and often overlooked at how closely tied the two can be.? Brett’s spotlight this month is an excellent example of how he ran into an issue, needed to raise awareness through his network to find a solution (which he had built via marketing over the years), and found a solution in Blake Dorsett.

Stainless Steel Midwest Aquires Allied Alloys | FEB ‘24

https://www.isrinews.org/stainless-steel-midwest-acquires-allied-alloys/?

World's biggest jeweller Pandora stops using mined silver and gold | FEB ‘24

https://www.reuters.com/sustainability/worlds-biggest-jeweller-pandora-stops-using-mined-silver-gold-2024-01-29/?

Nucor Ranks in Top 100 Sustainable Companies | FEB '24

https://www.barrons.com/articles/most-sustainable-esg-companies-nvidia-intel-target-walmart-c6674db7

In the recycling industry, community is a unique and valued aspect that fosters a spirit of support and collaboration among its members. This camaraderie is evident in the enthusiasm with which Aldo Jordan approached me to share his passion for the book "Your Afternoon Mentor" by Kevin Salcido .

"Your Afternoon Mentor" is a remarkable resource for leadership development and career advancement. Aldo's endorsement piqued my interest, leading me to explore its contents eagerly. I found the book to be an insightful guide, offering valuable lessons and practical advice for professional growth.

Moreover, our industry's commitment to mutual success prompted us to take our appreciation a step further. We had the privilege of hosting a podcast with the author, Kevin Salcido, where we delved into the key concepts and insights from the book. This engaging discussion provided additional depth and context, enriching our understanding of the material.

I invite you to listen to our podcast and discover the wealth of knowledge shared by Kevin Salcido. Additionally, if you're interested in exploring "Your Afternoon Mentor" further, please reach out for a complimentary copy.

Join us in celebrating the spirit of community and continuous learning within our industry. Let's support each other's growth and success.

For a free copy of this book email us at [email protected] with the subject line Your Afternoon Mentor. Limited quantities available!

Sit down and enjoy a few days of false spring with a glass of this riesling from a 850-year-old vineyard. This would be wonderful paired with a charcuterie board enjoying a sunset or a spicy curry.