Along with Gas - How about copper?

[john_axelson]

Noticed that a pound of copper is selling for less than $2.60 per pound this morning. Has anyone noticed a decrease in their copper costs from the distributors or manufacturer's yet? We haven't, a lot of distributors with a bunch of copper that they bought higher than they can sell it for.

 

[brantmacga]

Noticed that a pound of copper is selling for less than $2.60 per pound this morning. Has anyone noticed a decrease in their copper costs from the distributors or manufacturer's yet? We haven't, a lot of distributors with a bunch of copper that they bought higher than they can sell it for.

ha! all i hear from them is that i should buy now because its going up!

 

[jayrad1122]

Yep.

Yep.

My supply house decreased the price. I forget how much though. :roll:

 

[MF Dagger]

If you look at the history of copper prices every year it goes down in the winter . This year it dropped earlier, most likely due to the gas prices dropping. If the gas goes up so does the copper. Either way it'll probably take a spike next march or april

 

[john_axelson]

If you look at the history of copper prices every year it goes down in the winter . This year it dropped earlier, most likely due to the gas prices dropping. If the gas goes up so does the copper. Either way it'll probably take a spike next march or april

True, but it hasn't been this low in two years. Just curious what everyone else is seeing from their distributors.

 

[MF Dagger]

February of last year it was lower.

 

[bikeindy]

True, but it hasn't been this low in two years. Just curious what everyone else is seeing from their distributors.

Housing starts are down I think the demand for copper is down a bit so we should see a reduction over the next six months.

 

[john_axelson]

February of last year it was lower.

Are you referrring to Feb of 07?

Because in Feb of 08 it was trading between $3.10 and $3.30 a pound. Today it is at $2.35 a pound, last time it was at these levels our wiring pricing was significantly less.

In Feb of '07 that lasted for about a month. Two months previous to Feb '07 it was trading for above $3.00 per pound and two months after Feb '07 it was trading for over $3.00 per pound.

http://www.kitconet.com/charts/metals/base/spot-copper-5y-Large.gif

 

[peter d]

I think since price was high for so long, the market was probably flooded with scrap metal, which also contributes to downward price trends as supply increases.

 

[MF Dagger]

In any case Crescent Electric in Saint Paul went down a little bit I believe. Can't remember what Viking priced up at but I can look later tonight at the ticket.

 

[drbond24]

We lost about a gazillion dollars just on the material sitting in our warehouse when the price of copper went down. Trust me, no one here is anxious to lower the price when we paid $3.50 per pound or whatever for the copper in all the wire we currently have.

I'm just the plant engineer, and costing is not one of my responsibilties. I just enjoy watching the purchasing and accounting people freaking out about this. Everything was good when copper was skyrocketing, but apparently no one planned ahead for when it came back down.

 

[john_axelson]

Manufacturer

Manufacturer

That's the comment I was looking for. Had to do with inventory and buying at a higher price then you can sell it for.

Seems like the "smart" business man has no problem making more profit when he bought low and the market went up, hopefully the same smart business man had a plan for this. I don't see demand increasing, least not around here, so unless we have another artificial increase for some reason (strike at a plant, etc.) I don't see the price coming back up to the $3.50 range 'til after winter.