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Can someone explain the metals market?

Discussion in 'Shooting Related Threads' started by Michael Jobe, Feb 2, 2010.

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  1. Michael Jobe

    Michael Jobe TS Member

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    I've started watching the lead market on kitco so see why shot prices have been going back up. What I'm seeing doesn't make a lick of sense to me. Warehouse levels are higher than they've been in over 5 years... nearly 160,000 tons, which is triple to quadruple what warehouse levels were when I started shooting in spring 2005. Lead was in the 40 to 50 cent range during that time, and shot was under $19 a bag. Now, the current price is just over 90 cents a pound and shot is over $30 a bag. With such massively high warehouse levels, shouldn't the price per pound be taking a nose dive?!
     
  2. Gregg535

    Gregg535 Member

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    I think that much of the price comes from speculating on possibly very high demands for lead in the future; especially for use in electric cars.
     
  3. poacherjoe

    poacherjoe Well-Known Member

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    Everyone wants money!!! I was informed last week that Sierra bullet's had not increased their price's in over 2 years!! The retailers are jacking up the price and they are getting away with it.I know people at the range that have stocked up when the price was low and they are sitting on 2 tons of shot that they paid 12 dollars a bag for.Very good investment on their part.

    You need to shop smart.When and if the price comes down buy a ton.Most shooters don't do this. I tried to get people together to split a ton but they did not want to spend the money.Then they complain because I won't sell them any and if I did they want it at the price I paid for it,not the current price!
     
  4. AveragEd

    AveragEd Well-Known Member

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    I am a non-ferrous metals buyer for a large salvage company and can tell you that when someone figures this market out, they'll become very wealthy.

    Most of the companies we sell to set the prices they will pay for materials in accordance with the stock market, not the other "references," and then give us an order for, say, 15,000 pounds of #1 copper for a set amount per pound that we have 45 days, for instance, to fill. We know that regardless of what the market does, we will receive that much per pound of #1 copper for the next 45 days.

    If the market goes to hell during that time, we're protected. If it goes bananas, we still make our profit and will receive a new order for a higher amount per pound.

    It's a crazy business. Lead is the product we handle the least and right now is at the highest I've seen in quite a while. Last July, I was buying clean lead for 15 cents per pound and dirty lead (wheel weights, primarily) for five cents. Today, they are 35 and 20 cents per pound respectively. At that same time last year, I was buying aluminum extrusions for 45 cents per pound; now, they are at 60 cents. Last summer, #1 copper was $1.95; now, it's $2.60, so you can see that lead has gone up more proportionately. The non-ferrous material that has moved the least is stainless steel - last summer, I bought it for 40 cents and today, I'm paying 50 cents.

    Ed
     
  5. hmb

    hmb Well-Known Member

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    It goes up and it goes down. HMB
     
  6. ricks1

    ricks1 TS Member

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    as Ed said its crazy. You can watch the price of Gas and tell where the metals is going . You saw last fall gas was down and so was lead. Gas is now 2.75 and shot is $30+
     
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