Hands up who else has been affetcted by the credit crunch!!!
Discussion
I help run a long established family scrap metal merchants established in 1924. The business has been built up to one of the largest merchants in somerset.
Things have been getting better and better over the last 5 or 6 years until about a month ago. The demand for raw metal has virtualy vanished as manufacturers are reducing production by about 50%. The first 6 months this year were the best on record but now it is like someone has turned the tap off completely. We've had to lay a few good blokes off. One of the hardest things i've had to do. We've tightened the belts as much as possible to ride it out but i don't think there will be any money to be made in the near future. Luckily we don't owe anybody anything so we're in a better position than most.
I would be interested to hear how this recession has affected others.
martin
Things have been getting better and better over the last 5 or 6 years until about a month ago. The demand for raw metal has virtualy vanished as manufacturers are reducing production by about 50%. The first 6 months this year were the best on record but now it is like someone has turned the tap off completely. We've had to lay a few good blokes off. One of the hardest things i've had to do. We've tightened the belts as much as possible to ride it out but i don't think there will be any money to be made in the near future. Luckily we don't owe anybody anything so we're in a better position than most.
I would be interested to hear how this recession has affected others.
martin
I feel for you guys but I don't think it's manufacturing that's given you the kicking, we're still generating as much scrap as before but have seen our clean CR4 go from £180ish earlier in the year down to £30/tonne. In our area EMR actually closed their doors for 3 days out of 5 and would then only take iron on an FOC basis, they've got millions of pounds worth of scrap sitting at the docks but the mills just don't want it, china has said "thanks we've got enough now" and the scrappies have been left holding the baby, I guess a fair few will go to the wall over the this and hope for you that you'll be able to ride it out. Good Luck
Both hands up here! I'm in the motor trade in America. Out of work (Left a job that was just impossible to deal with) and am back to wholesaling.
I have demand for cars, but the franchise dealers are all doing such low business at the moment that there is hardly anything for me to buy. Have moved some exotic stuff, but that didn't make much. Some used car lots that I know are badly hurting for inventory, but there's hardly anything worth having out there.
I have demand for cars, but the franchise dealers are all doing such low business at the moment that there is hardly anything for me to buy. Have moved some exotic stuff, but that didn't make much. Some used car lots that I know are badly hurting for inventory, but there's hardly anything worth having out there.
I for one hope that emr do go to the wall. They are a ruthless company that wanted every bit of scrap metal generated in the uk and if they were not buying from you they would do there best to (blow you out of the water) lol there words. They have been stung with about 3 million tonnes of stock on there docks that has dropped in price at an unheard of pace.Being conservative work it out if there stock has dropped by £100 per tonne that's gotta hurt. We never play the markets and are happy just working on our percentage so therefore never have a huge stock in the yard. And havn't been caught out with the market drop. It's just happened so fast that it seems weird actualy having spare time on my hands.
Martin
Martin
mel said:
I feel for you guys but I don't think it's manufacturing that's given you the kicking, we're still generating as much scrap as before but have seen our clean CR4 go from £180ish earlier in the year down to £30/tonne. In our area EMR actually closed their doors for 3 days out of 5 and would then only take iron on an FOC basis, they've got millions of pounds worth of scrap sitting at the docks but the mills just don't want it, china has said "thanks we've got enough now" and the scrappies have been left holding the baby, I guess a fair few will go to the wall over the this and hope for you that you'll be able to ride it out. Good Luck
Mel we're actualy very busy with local manufacturing. We have a lot of aerospace contracts and they seem very busy at the moment. The problem is with the steelworks and automotive industry. They are hardly producing anything at the moment so aren't buying the raw material. hence the massive price drops.Martin
I work for a mortgage broker, I'll definately be a lot out of pocket this year, lucky enough to have savings to cover losses, but they won't last for ever. Can't see myself going away on holiday for 18 months, mind you I've only taken 50% of my holidays this year anyway and must have 20 days in lieu. Pretty confident about my job staying, as long as the company stays afloat, which I know we are well placed to ride it out. So at least that's positive.
And yes of course lots of redundancies have already happened.
And yes of course lots of redundancies have already happened.
The price of oil has dropped below economical production costs, my company shares down to $44, from $100 two months ago, our company is currently building six new oil survey ships, $500 million, and it looks like it is all about to go down the toilet.
I have a big mortgage too. Well, big payments, but we own50%, 40%, 30% of the house, so it is not all bad news, should be enough cash left over for some razor blades if it all goes tits up. 
I have a big mortgage too. Well, big payments, but we own
My flatmate is a barber and he is really struggling even though you would think that people still need their hair cut.
I run a paintball site and we are having a good year although most other sites have gone a bit quiet. I am just hoping that people will still need to go out and have a bit of fun even when times are tight.
I run a paintball site and we are having a good year although most other sites have gone a bit quiet. I am just hoping that people will still need to go out and have a bit of fun even when times are tight.
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