Sorry, but looks like your stuck with me for at least one more article.
Vegas, Vegas, Vegas…..if you were not there you missed it. Over 5,000 people attended the convention this year making it one of the top 5 conventions.
We talked about many important issues during the convention this year including transportation, China, 232 legislation, and even a session with American Metal Market discussing their methodologies. All these issues will have impacts on our businesses in the coming years. Let’s take a quick look at each.
Transportation, the shortage of drivers/trucks is causing freight to continue to rise with no quick fix in the future. This along with the lingering railroad issues are forcing many to scramble each month to fill orders. I have great concern that this trend will continue and will put smaller to medium yards at a disadvantage. I hope I am wrong.
China, seems like every day there is a new issue regarding imports of products. Currently this has not had an impact on ferrous but has had a huge impact on nonferrous. Most feel it will not trickle over into ferrous but as always, we need to keep an eye on it, and in the end, what impacts one impacts all.
232 legislation, not sure about you but I find it funny that it is issued, everybody gets upset and then everything is put on hold temporarily while they figure things out. So far, we do have new agreements with several countries. The upcoming discussions with China will give us direction as to what will happen with them, so we can move on to Europe for our next challenge.
Our discussion with the AMM went well and the meeting had to be closed to press and non-ISRI members but still provided lively discussion on the issues pertaining to their newspaper.
We discussed with them the issues we face when they change markets, make adjustments, or delist items. I do think they listened and will try to do better at understanding the impact but in the end, they believe in their methodology and will follow that diligently. We have suggested to them that they consult with someone from our industry to better understand the relationship between customers and scrap dealers. Therefore, understanding the impact on any change, not sure it worked but we tried.
I hope you are ready for summer and you and your families have a great one. Hope to see you in DC for the summer board meeting. I can promise it will be hot there!!
Ferrous Division Chair
Ferrous Beat Main