BajaNomad

Scrap metal prices

thebajarunner - 7-12-2008 at 02:30 PM

Scrap metal prices have gone from about $275 per ton last fall to nearly $700 a ton today.
Nucor, a major steel producer, basically produces new steel from this scrap and we have seen our Nucor price index go through the ceiling this year. In fact, Nucor perfected a fascinating new process some years back to process auto body scrap into new steel, eliminating all the glass, plastic, rubber, vinyl, etc.

I was reading another thread about Asuncion, and the comment was made that a lot of scrap is currently being hauled away.

Makes me wonder when some Mexican entrepeneuer is going to start cruising Mex. 1 with a flat bed and a boom loader and picking up all the relics along the way.

Wanna bet that the highway is going to get somewhat "beautified" in the coming months?

DianaT - 7-12-2008 at 02:41 PM

Quote:
Originally posted by thebajarunner


Makes me wonder when some Mexican entrepeneuer is going to start cruising Mex. 1 with a flat bed and a boom loader and picking up all the relics along the way.

Wanna bet that the highway is going to get somewhat "beautified" in the coming months?


It is happening now! Not just here in Asuncion, but on our last trip down and last week in Vizcaino we saw many trucks of all sizes full of metal --- small pick-ups to semis. Lots of crushed old vehicle relics were included.

Thanks for the info---we knew the price had to be higher, but had no idea it was that much higher.

Diane

comitan - 7-12-2008 at 03:06 PM

So thats it, La Paz has a yard with scrap cars,rows of them maybe 15 cars high.

jeffg - 7-12-2008 at 03:11 PM

Yeah I do think it's happening already. We drove from Los Barriles up to the border a week ago and saw many large trucks loaded to the gills with scrap metal.

For a while it had me wondering, how many times do I have to pass this same truck full of scrap? And how does he keep getting in front of me?

Jeff

cabobaja - 7-12-2008 at 03:15 PM

Yep, your right! Drove from San Diego to Elias Calles June 15th. Drove to Asuncion July 4th. I have never seen so many 18 wheelers full of old cars.

Now I'm a Mexican....maybe I should start a new business?!?

toneart - 7-12-2008 at 04:44 PM

Some enterprising hombres have already started a new business: that is what all the catalytic converter thefts are about. Scrap! On the evening news last night, two were caught. I didn't hear which city they were caught in, but it was in the U.S.:mad:

cabobaja - 7-12-2008 at 05:45 PM

If they want to steal my catalytic converters they won't find them. I already stole them.

DianaT - 7-13-2008 at 12:31 PM

Quote:
Originally posted by toneart
Some enterprising hombres have already started a new business: that is what all the catalytic converter thefts are about. Scrap! On the evening news last night, two were caught. I didn't hear which city they were caught in, but it was in the U.S.:mad:


Our's is beginning to make noise---maybe we should donate it. :lol:

It really is amazing. There are people here trying to pick up the smallest scraps of metal from the dunes, metal that is so old it just crumbles when touched.

I wonder what is happening to the large vehicle graveyard that is off the highway from Mexicali to Tijuana---the one that is way down the side of the canyon. Have not been that way for a while, but it would be a MAJOR task getting those up that mountain.

Diane

[Edited on 7-13-2008 by jdtrotter]

thebajarunner - 7-13-2008 at 04:16 PM

The auto "graveyard" in the canyon on the south hill of La Mision Valley, on the free road, used to be a mandatory stop to show first timers.
It was literally stacked with hundreds of wrecks, local lore had it that on Saturday nights the locals would sprinkle some sand on the Northbound lanes, top of the hill, and gather up auto parts and siphon gas tanks on Sunday.

Now, all gone! Someone built a road in from the bottom and cleaned it out, completely. And, this was done at least a year ago before the scrap prices went nutzo. Think what that mountain would have been worth had they waited a year or so.

By the way, catalytic converters hardly qualify as "scrap"
Just thought I would make that distinction...

toneart - 7-13-2008 at 05:26 PM

Quote:
Originally posted by thebajarunner

By the way, catalytic converters hardly qualify as "scrap"
Just thought I would make that distinction...


I have condensed this article to glean the pertinent information.
If you google the subject, there are pages of reports like this.

The New York Times
Printer Friendly Format Sponsored By

March 29, 2008
Thieves Leave Cars, but Take Catalytic Converters
By SUSAN SAULNY

Theft of scrap metals like copper and aluminum has been common here and across the country for years, fueled by rising construction costs and the building boom in China. But now thieves have found an easy payday from the upper echelon of the periodic table. It seems there may not be an easier place to score some platinum than under the hood of a car.

The price of gold recently hit record highs, crossing the $1,000-an-ounce mark before retreating a bit. Less well publicized has been the fate of the even-more-rarefied metals platinum, palladium and rhodium, with platinum hitting recent record highs of more than $2,300 an ounce. People who may have thought their lives had nothing to do with the booming commodities market are finding out the hard way where their connection is — in their car’s exhaust system.

The catalytic converter is made with trace amounts of platinum, palladium and rhodium, which speed chemical reactions and help clean emissions at very high temperatures. Selling stolen converters to scrap yards or recyclers, a thief can net a couple of hundred dollars apiece.

Price - 7-13-2008 at 07:57 PM

Our first trips to San Felipe - 3 years ago - there were always alot of semi cars in the empty fields - went to Mexicali last week & there was not one car hull to be seen - did see a full flat bed on the side of the road - this is a good thing - with all the crap about how dangerous MX is - it's good not to see the car graveyards cause your imagination can take you places you don't want to go about how all those cars got there !

bajalou - 7-13-2008 at 08:14 PM

All the old stoves, refrigerators, etc that were sign posts in Valle Chico are gone. A car crusher comes to San Felipe every couple months and crushes the cars etc that the scrap people gather up. Then haul to Mexicali and the steel mills I guess. Also see the trucks coming from Ensenada with loads of scrap headed north.

The New (Catalytic) Math ?

MrBillM - 7-13-2008 at 08:34 PM

Quote:

"The catalytic converter is made with trace amounts of platinum, palladium and rhodium, which speed chemical reactions and help clean emissions at very high temperatures. Selling stolen converters to scrap yards or recyclers, a thief can net a couple of hundred dollars apiece."

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I just looked up some current pricing for Catalytic Converters and the LIST pricing was in the $150-$300 dollar range with the majority being around or below $200.

I went to school BEFORE the New Math became popular so, perhaps, I'm missing a part of this equation.

Having been involved in an auto parts operation many years ago (pre-catalytic days) where we made good bucks "recycling" defective and nominally obsolete equipment including mufflers, I would say from my experience that a more likely consumer for the aforementioned converters would be the medium to smaller independent repair shops always looking for a good deal. For someone with welding capability, they will fit mostly whatever you'd like them to.

Car converter recycle

thebajarunner - 7-14-2008 at 08:25 AM

Mr. Bill- that is our observation here as well.
The cost of converters is high because of the trace elements, as was pointed out, but the recycle value of those elements is not nearly as high as the intact value of the unit, which when stolen can be quickly "recycled" back onto another tailpipe.

toneart - 7-14-2008 at 09:30 AM

The explosion of media reports on catalytic converter thefts, and police departments across the U.S. offering to engrave your license plate number on your unit are not attributable to the value of the trace elements?

Well then, there you go. You have discovered a new business for yourselves; take orders, steal catalytic converters to replace others' who've been stolen. :cool::cool::cool:

Sad to say....

thebajarunner - 7-14-2008 at 09:40 AM

Quote:
Originally posted by toneart
The explosion of media reports on catalytic converter thefts, and police departments across the U.S. offering to engrave your license plate number on your unit are not attributable to the value of the trace elements?

Well then, there you go. You have discovered a new business for yourselves; take orders, steal catalytic converters to replace others' who've been stolen. :cool::cool::cool:



...that is precisely what is happening.
And, to replace converters that have burned out and need to pass inspection (generally from burning leaded gas)
Not much $$ in recycling them, lots of money in re-installing them...