wire prices
- Thread starter cj1111
- Start date
- Status
Re: wire prices
Supply and demand.
As long as there is demand for new housing - it WILL be built.
Above from: http://www.census.gov/const/www/newressalesindex.html
While there may be some actual slowing of new sales - which will translate into less new homes being built - the numbers are STILL staggering:
1 million SALES sfh/month!
In NJ, where I am by the Hudson River overlooking Manhatten, demand is very strong for housing. What is being built here are multi-story buildings containing condos of various sizes...and they are being completely SOLD prior to completion. Some are being bought on speculation then re-sold upon completion, but the majority are bought by people who will live in them.
I will agree with you that this IS insane....a 1BR/1Bth condo selling for upwards of $500k - that's just NUTS.
I must also confess that when the condo craze first started around here (in the late 80's) I thought - What fool would BUY a 1Br/1Bth apt. for $50k?
That same "fool" can sell that 1Br/1Bth unit (that's 20 years old, has been paid off for 10 +/- years, and has been rented at $1500/mth for the last 10 +/- years) for a minimum of $350k. Not too bad a deal for a "fool", no?
Who knows in another 20 years, I might have the same confession to make?
cj1111 said:
Supply and demand.
As long as there is demand for new housing - it WILL be built.
Source:NEW RESIDENTIAL SALES IN MARCH 2006
Above from: http://www.census.gov/const/www/newressalesindex.html
While there may be some actual slowing of new sales - which will translate into less new homes being built - the numbers are STILL staggering:
1 million SALES sfh/month!
In NJ, where I am by the Hudson River overlooking Manhatten, demand is very strong for housing. What is being built here are multi-story buildings containing condos of various sizes...and they are being completely SOLD prior to completion. Some are being bought on speculation then re-sold upon completion, but the majority are bought by people who will live in them.
I will agree with you that this IS insane....a 1BR/1Bth condo selling for upwards of $500k - that's just NUTS.
I must also confess that when the condo craze first started around here (in the late 80's) I thought - What fool would BUY a 1Br/1Bth apt. for $50k?
That same "fool" can sell that 1Br/1Bth unit (that's 20 years old, has been paid off for 10 +/- years, and has been rented at $1500/mth for the last 10 +/- years) for a minimum of $350k. Not too bad a deal for a "fool", no?
Who knows in another 20 years, I might have the same confession to make?
fc
Senior Member
- Location
- New Jersey
BX 3 weeks ago we paid $385.00 per 1000 Today quote is $527.00 per 1000. That some increase in 3 weeks time.
77401
Banned
If Exxon is being bad mouthed & boycoted for record earnings, because of the high price of gasoline, based on the price of a barrel of crude.
Will we have record earnings for 2006 based on the high price of copper?
After all, Exxon has the same markup & margins on gas as in 2005. We still have the same % markup on our materials. Let the wire continue to go up. I'm just a middle man. Labor rates stay the same.
Some day, We'll be making more money on sales of material than labor.
Is that so bad?
Will we have record earnings for 2006 based on the high price of copper?
After all, Exxon has the same markup & margins on gas as in 2005. We still have the same % markup on our materials. Let the wire continue to go up. I'm just a middle man. Labor rates stay the same.
Some day, We'll be making more money on sales of material than labor.
Is that so bad?
hardworkingstiff
Senior Member
- Location
- Wilmington, NC
Hi today was $3.70/lb., closed at $3.696/lb.
That's about a 2.45% increase, just today.
My costs on the type W cable I use went up 30% yesterday.
It's going to get very interesting.
That's about a 2.45% increase, just today.
My costs on the type W cable I use went up 30% yesterday.
It's going to get very interesting.
tedge
Senior Member
- Location
- Camden, ME
Overnight, 12/2 NM went from $300/1000 to $450/1000 here. 50% increase in 12 hours. Tell me that's not insane. Anybody have any idea how long this will last? I assume that it is temporary, but maybe not.
77401
Banned
http://www.eoddata.com/StockQuote/INDEX/CPR.htm
Coper Index price was steady below $240 until the middle of march...This Year! Closed today at $361 today
Now look back 2 years
USA Today Money section 6/2004...
Oil has been the star of the commodities market. The price of a barrel of oil is up 21% this year. But other commodities have had big rises, too: copper, 23%; lumber, 20%; aluminum, 10%.
Why the spike in commodities? Blame the growing economy. U.S. gross domestic product rose 4.4% the first four months of 2004 after a 4.1% gain in the fourth quarter of 2003. "When you have growing demand, it takes suppliers a fair amount of time to respond," says Kevin Baum, portfolio manager of Oppenheimer Real Asset fund.
But the growing U.S. economy isn't the only factor sending commodities soaring. Others:
?China. China's GDP grew 9.7% the first quarter. "They have tremendous infrastructure build-outs," Baum says. "It's staggering." Pimco, the Los Angeles bond manager, says China is consuming 20% to 30% of the world's cement, and similar amounts of steel, coal and iron ore.
?Iraq. War also spurs consumption of raw materials, particularly steel and copper, as well as plywood. The Defense Logistics Agency, for example, is buying more than 20 million feet of plywood sheeting, mainly for U.S. base camps and guard posts in Iraq.
?Housing. The booming real estate market has also pushed up commodity prices, thanks to the surge in home construction. According to the Department of Commerce, 2.1 million homes were started in December.
Not all commodity prices have risen. Wheat and gold prices, for example, are down this year.
Still, the rise in many commodities leaves us with three questions:
?How long can the boom in commodity prices go on? Not too long, says Mark Zandi, chief economist at Economy.com. Eventually, suppliers will rev up production of key commodities, rising interest rates will slow U.S. growth, and purchasing managers ? terrified of being caught short of vital materials ? will calm down.
"Purchasing managers have lost it," Zandi says.
But the long-term argument for some commodities, particularly energy, remain solid. World oil production is likely to peak by 2030, while demand is expected to continue growing.
?Do you need commodities in your portfolio? In the short term, it may be late to take advantage of the move in copper, aluminum and oil. Commodities fare well when inflation rises. The million-dollar question, Baum says, is whether the recent spike in some commodity prices is a warning signal of higher inflation. If companies can pass on higher raw materials prices to consumers, then some prices might rise.
Coper Index price was steady below $240 until the middle of march...This Year! Closed today at $361 today
Now look back 2 years
USA Today Money section 6/2004...
Oil has been the star of the commodities market. The price of a barrel of oil is up 21% this year. But other commodities have had big rises, too: copper, 23%; lumber, 20%; aluminum, 10%.
Why the spike in commodities? Blame the growing economy. U.S. gross domestic product rose 4.4% the first four months of 2004 after a 4.1% gain in the fourth quarter of 2003. "When you have growing demand, it takes suppliers a fair amount of time to respond," says Kevin Baum, portfolio manager of Oppenheimer Real Asset fund.
But the growing U.S. economy isn't the only factor sending commodities soaring. Others:
?China. China's GDP grew 9.7% the first quarter. "They have tremendous infrastructure build-outs," Baum says. "It's staggering." Pimco, the Los Angeles bond manager, says China is consuming 20% to 30% of the world's cement, and similar amounts of steel, coal and iron ore.
?Iraq. War also spurs consumption of raw materials, particularly steel and copper, as well as plywood. The Defense Logistics Agency, for example, is buying more than 20 million feet of plywood sheeting, mainly for U.S. base camps and guard posts in Iraq.
?Housing. The booming real estate market has also pushed up commodity prices, thanks to the surge in home construction. According to the Department of Commerce, 2.1 million homes were started in December.
Not all commodity prices have risen. Wheat and gold prices, for example, are down this year.
Still, the rise in many commodities leaves us with three questions:
?How long can the boom in commodity prices go on? Not too long, says Mark Zandi, chief economist at Economy.com. Eventually, suppliers will rev up production of key commodities, rising interest rates will slow U.S. growth, and purchasing managers ? terrified of being caught short of vital materials ? will calm down.
"Purchasing managers have lost it," Zandi says.
But the long-term argument for some commodities, particularly energy, remain solid. World oil production is likely to peak by 2030, while demand is expected to continue growing.
?Do you need commodities in your portfolio? In the short term, it may be late to take advantage of the move in copper, aluminum and oil. Commodities fare well when inflation rises. The million-dollar question, Baum says, is whether the recent spike in some commodity prices is a warning signal of higher inflation. If companies can pass on higher raw materials prices to consumers, then some prices might rise.
Bought two pallets of 12/2 wg at Home Depot last week for $263 per 1000 after price matching, etc. Price today is at $359. My reasoning: If I don't need it or the price goes down, I can take it back and receive a refund. Hold onto it for 30 days until credit card bill comes due. At this rate, I think I'll sit in the parking lot and sell it for $320 a reel.
hardworkingstiff
Senior Member
- Location
- Wilmington, NC
sroc2006 said:
If prices start falling (which I doubt), I wonder how long it will take HD to discover their loss position?
bobbyho
Senior Member
- Location
- Central Connecticut
I priced out a couple of my supply houses today: roll of 14/2 (250ft) is $65.00 and roll of 12/2 is $100.00. I have been in business for only 6 years, has these kind of prices ever happened before? It jumped $15.00 from 8am to 10:30 am this morning.
peter d
Senior Member
- Location
- New England
bobbyho said:
I am guessing you are dealing with EW. Their prices are always much higher than the competition on wire. This was true even when copper prices were "normal."
Try some other suppliers, better yet HD or Lowes. Heck, when I worked for EW we told everyone to buy Romex at HD because we knew how bad our (EW's) prices were!
- Location
- Logan, Utah
The price of 12/2 250' roll at HD yesterday was $92.50 :shock:
Two weeks ago it was $65 for the same roll.
Pretty soon I will have to pawn my guitar to afford to wire my basement.
Chris
Two weeks ago it was $65 for the same roll.
Pretty soon I will have to pawn my guitar to afford to wire my basement.
Chris
77401
Banned
HD Houston Prices
12/2 $102
14/2 $64
Last week 14/ was $42
Actually the price tag on the aisle said "Market Price"
Just like the good fish in a fine restaurant!
12/2 $102
14/2 $64
Last week 14/ was $42
Actually the price tag on the aisle said "Market Price"
Just like the good fish in a fine restaurant!
jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
As of 5/8/06 at Menards:
12-2 NM 250': $72.90
14-2 NM 250': $49.90
12-2 NM 250': $72.90
14-2 NM 250': $49.90
- Location
- Logan, Utah
"What are todays specials?"
"Well we have a nice roll of 12/2 for just $92.50, freshly caught today." :lol:
Chris
"Well we have a nice roll of 12/2 for just $92.50, freshly caught today." :lol:
Chris
peter d
Senior Member
- Location
- New England
For a while, I thought the price run up in wire was no big deal as it would go up and then level off or decline slightly. But when I see the price of 12/2 is now over $100 for 250 feet and climbing daily I am starting to worry a little. 
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