RZR Recycling Blog Rantings, Ravings, and other Ruminations on the world of Scrap Metals.

Aluminum cans and and the pain that goes with them

Well as a few of you may know, I am not a big fan of the current Aluminum can process. Thanks to California having been quite lax in their CRV policy, can values have been overinflated for several years. This is due to the fact that a small group of individuals figured out that by buying cans in Arizona and selling them in California, they can make some serious coin getting the CRV value without having first paid the CRV deposit. What this has meant to us in AZ is a price for recycled cans that has been more than double their actual scrap value. 

"Why does this matter to me?" you may ask? It matters because Cali has finally started making it very difficult to sell the cans in bulk and has gone so far as to charge a few companies with fraud for knowingly buying cans not originating in Cali, costing them millions in fines and possible jail time. Locally, it means the death knell for high can prices as the can people get diminished returns on their nefarious enterprise. It means a return to a true value which most people will not like and will most likely cause a massive slowdown in cans being recycled. Much like with steel, once the value hits a certain low point, people don't bother recycling. This is bad news for both the recycling industry in AZ and the environment. Cans are a "gateway product" that gets people in our yards, where they then learn about all the other items we purchase. In addition, the more things we recycle, the less that ends up in a landfill and that alone should be enough reason to do it. 

Anyway, one of two things needs to happen: We institute a CRV program here in AZ, or we educate people on the benefits beyond money for recycling. Since I have little hope in our govt adding a CRV program here, I will continue to preach from my little pulpit here and beg you all to continue recycling, even if the payout isn't as good as it once was. You are not only helping small businesses like RZR Recycling, you are helping to slow down our use of natural resources. So please accept the fact that cans are not as valuable as you thought, and recycle for the good of humanity, as well as your pocket.

One last thing, KEEP THE DARN TABS ON THE CAN! They hold no special value, no matter what your cousin says. If you can find a place that pays 100.00 for a milk jug of tabs send me a message, I'd love to get in on it! 

All my best,

Will Ribadeneira

RZR Recycling 

22380 n 20th Ave, Phoenix AZ 85027

623-869-0021

Open 7:30 to 4:30 Monday to Friday, 7:30 to 12:00 Saturdays

www.rzrrecycling.com

Scrap- Where have you gone?

Random thoughts on this Veterans Day- Thank you to all service men and women for all you have sacrificed.

Having been in this business for several years I always find it strange when the scrap materials seems to dry up. I know more people do it for the money than for the goodwill of a cleaner planet but just because pricing is down shouldn't mean that the material stops flowing. Unless you are a large company with deep pockets or a large empty warehouse, you need to remove the waste materials from your location. I guess I am just wondering if people are simply throwing it away or attempting to hoard for a better payday? 

In good times and bad, I still maintain the basic premise of my business model. Buy, sell, repeat. I am not a commodities broker, I am a scrap dealer. Do I hold on to some things hoping for a better number? Occasionally, but it usually bites me in the ass. I have learned to sell what I have, buy more and sell again, locking in whatever profit I can and move forward. I wish the general public did the same. But the last few months have seen a drastic reduction in the amount of scrap coming through the doors. Steel I get, it's bulky and hard to load. The current market makes it unattractive to deal with. But throwing it away costs money as well so I guess I don't get the thinking process. Copper still pays, even if it is less than a year ago, or even a few months ago. 

At the end of the day I am fortunate enough to have a steady commercial clientele that keeps me afloat as we wait out these current conditions. At some point the markets will improve and I will be ready for the onslaught of scrap metals coming in. I just wish that day was today, as do we all I am sure. Until then, we fight to get every piece of material we can and maximize the return as best we can. I'll be here tomorrow, and every day until I decide I don't want to do it anymore. Low markets aren't going to make me quit, that's for damn sure!

On a completely unrelated note, it was a beautiful day in Phoenix today and at least I wasn't sitting in a cubicle somewhere being miserable. I was able to be outside and enjoy paradise, so I have that going for me. Which is nice.

Will

"Do not take life too seriously. You will never get out of it alive."

Elbert Hubbard

 

 

Random thoughts on Scrap and anything else I can think of- RZR Recycling

So today starts my adventures into the world of blogging. Let me first start off by saying that I am not a great writer, nor am I particularly funny. I will have spelling errors and some things I will say will most likely offend someone.

Ok now that that's out of the way let's get started! The scrap world is in upheaval right now, with pricing lower than we have seen since 2009. What does this mean? Well, the obvious answer is less money for your items, more frustration as yards clamp down on extraneous materials that have no real value or are too hard to clean up. The flip side is that our yards are hungry for material and will probably treat you better than we ever have before. Well, not RZR Recycling since our level of service is constantly top notch ( shameless plug I know). 

Seriously though, steel is as close to actual garbage as possible. If it continues its downtrend there may be no payment or outright refusal of steel to the yards. The forecast is bleak and value is expected to stay low for some time. 

Copper continues its dance, going up and down by the day. With winter coming we may see some larger drops and of course, angry clients as a result. So how do you avoid the devaluation of your materials? By bringing them in now while prices are relatively decent! Don't be the guy who who waits and waits only to find out he missed the boat. Always better to sell and lock in profit rather than hold and pray.

Anyway, I know it sounds like doom and gloom but just remember everything that goes down must come up. Well, except for crashed planes and my wife's patience level, but that's a blog for another day.

Enjoy your day and get scrapping, our children's futures depend on it!

Will

RZR Recycling 

"Life is not about how you survive the storm, it's about how you dance in the rain."  

 

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