We know how incredible important community is! With what is going on in the world right now, we wanted throw our support behind the men and women who are at the front lines of this fight. Thank you to all of the health workers that are keeping our mothers, fathers, sisters, and brothers safe during this unprecedented moment in our history. Not all heroes wear capes! Let's all show our support for our front line health workers!
Ami Tsarfati at 10:14 AM
Scrap Metal Market Update April 2020
Thursday, April 2, 2020
I hope that everyone is staying safe and relatively sane during these challenging times.
As a business, this isn’t the first pandemic that Joseph & Company was operated through, but I think that it is safe to say that for all of us, this will hopefully be our first and last.
Being classed as an essential business aside, this isn’t business as normal for any industry or operation. Barring those who are making medical or other front-line supplies, we are all reviewing our operations to ensure that we are maximizing our efforts to keep our team employed safely and our business operating efficiently.
Where we are hoping to support our family of businesses and entrepreneurs we work with is to ensure that we are able to give the accurate and timely market information and ensure that our team is there to support your business where we can.
So on that note, I wanted to shoot over some information relating to the stainless scrap metal market. Commodities, as we have seen with all base metals and oil, seem to be as hard hit as any asset class. Not withstanding, the mills are seeing ample supply coming in, however, limited sales, as industry across North America and Europe is taking a hit as a result of COVID-19 lockdowns and a quickly slowing economy as a result. Although China seems to be getting through the worst of their experience, there seems to be some issues with the integrity of their numbers and general reporting of their experience.
As a result, we are seeing scrap pricing for many items taking a significant hit for the April market – likely heading into May as well. As the article attached notes, we are seeing a steady decline in stainless pricing – whether 304, 316 or 400 series. The saving grace for Canadians is that our exchange has supported prices based on CAD. By example, 304 prices have declined in USD by over 15c in the past month (apx. 30%-35%), however, the USD exchange has added apx 10% to the price, so the actual hit in CAD has been only around 15-20% on average.
We are seeing this across the board with all commodities, so if you produce other scraps, expect a similar analysis.
However, we are resilient business community and when life gives us lemons, we COVID-19 some lemonade. So if anyone was questions or wants to chat about business in general, please feel free to contact me. We are in this together and likely are sharing similar experiences.
Ami Tsarfati at 11:13 AM
Thursday, March 26, 2020
At Joseph And Company, we recognize the serious nature of the current COVID-19 pandemic and the need for a business response that is aimed at protecting the health and well-being of our employees, clients and the public at large, as well as ensuring our continued efficient operations. With the recent announcement from the provincial government (re: essential workplaces in Ontario), Recyclers will be permitted to continue to operate. Although business will continue to operate, it is imperative that all employees and visitors adhere to our mandatory workplace practices.
Yes, we are open!
Both our ferrous yard on Lancaster St. and our main office on Victoria St. continue to remain open and our trucks remain on the road ready to service your workplace and/or worksites. We will continue to do our best to work within the framework of rules, guidelines, and best practices related to serving customers during the COVID-19 pandemic. If you adhere to the rules we set out in our spaces, you can trust that your experience will still be a positive one.
We are currently operating a different schedule at both yards. Our current hours, as of March 25th are:
Monday – Friday: 8:00am – 3:00pm
Currently, there is no disruption to our bin servicing. It’s important that we maintain your regular service levels and uphold environmental responsibilities to our communities.
What has changed?
Joseph and Company is doing our best to be socially responsible. We will do everything within our power to ensure that we consider and accommodate employee safety and well-being.
Client Visit & Contact Protocol
Joseph and Company are currently not undertaking any site visits. They’ll utilize email, phone and other means of technology to communicate and ensure business continuity.
Feel free to give us a call to say hello or any other virtual social interaction. We are here for your even if we cannot physically be present! We want to know how you are doing!
On-Site Facility Safety & Best Practices
Employees who have travelled outside of Canada (or those who have been in contact with someone who has) have been advised that they are immediately to be placed in 14-day self-isolation at home.
Employees who are feeling sick are not permitted to come into the workplace.
High traffic areas such as the cashier booth, door handles and common areas will be disinfected.
It is imperative that each of us follow strict social distancing of a min. 6 feet. This also extends to any visitors that come into our facility.
Our main office shall only service one customer at a time. So only the person being paid should be in.
Avoid non-essential gatherings and greetings (such as handshakes).
Frequently wash your hands and do not touch your face.
We ask that if you answer yes to any of these questions, that you DO NOT come to any of our yards or workspaces. Any visitors exhibiting signs of being sick will be asked to leave and not return for 14 days.
Are you experiencing any flu-like symptoms, such as fever, cough, or shortness of breath; or have you
had any of these symptoms in the past 14-days?
In the past 14-days, have you traveled outside of CANADA?
Have you been in close contact with anyone who has tested positive for COVID-19, been under quarantine in the past 14-days, or is currently being evaluated for COVID-19?
We thank you in advance for your cooperation and continued support of our business. These measures are being put in place for the protection of our employees, as well as contractors, suppliers, and all visitors to our facilities.
Should you have any questions please do not hesitate to ask.
If you have been reading my commentary, you will know the main culprits of pricing pressure on steel has been the lack of export due to the tariffs that the US administration has placed on incoming steel and more recently the chipping away of prices for new steel due to a poor orders from service centres and other mill customers.
This month, we have the added challenge of capacity being taken out of the market due to mill outages for ‘routine’ maintenance and the recent GM strike. The GM strike should not be understated, as I have been told that GM alone consumes around 35,000 NT of steel a month in the US and Canada. Then you add their tiered suppliers to the mix – that is a lot of material not being consumed with no where else to go!
What this means is that we are going to experience yet again, another severe price drop for our ferrous scrap metal that we are generating. And based on what my instinct tells me, we likely will not see a meaningful rebound in pricing for some time, as inventories are building up across many yards due to reduced mill orders and a challenging environment for recyclers to market their scrap into.
We expect the October market to come out early to mid next week and we will have more clarity on our markets and scrap metal credits for you at that point.
This is not the first challenging cycle in our over 100 year history and we have experienced and we will continue to ensure that our customers get the best value for their scrap that they are generating.
If you have any questions about your recycling program or market questions in general, please feel free to reach out.
Ami Tsarfati at 9:30 AM
Commitment to Community: The FoodBank of Waterloo Region
Monday, September 23, 2019
As a local company, we are always wanting to give back to the community in which we live. The FoodBank of Waterloo Region is a fantastic organization that does tremendous work for the community and it is one that we are proud to help support. With 3 meals being provided for every $1 donated, the FoodBank help support more than 34,000 people in the community. They help fight food insecurity and make sure families who are in need, can access the help they need. In 2004 alone, they helped distrubute 3.1 million pounds of food to 63 programs to assist 23,5000 people.
We are glad to be a part of such positive change and such a great organization!
Ami Tsarfati at 12:03 PM
Bloomberg - Copper Sends a Message to Markets That Growth Is Already Wrecked
Friday, August 9, 2019
Good afternoon all!
Given all the trade talk and economic news in the air over the past week, I thought that I would send a note on how commodities are fairing with this news.
As I’m sure that you have noticed on your scrap metal credits of recent, market pricing is declining from several months back. Naturally, I have sent along some information detailing the price movements, however, this article below paints picture on how metal pricing is now a leading indicator on our economic fortune (or lack there of). And more soberly, as a metal trader once told me – ‘the trend is your friend’ – and this trend seems to be bearish.
Interestingly, not all scrap metal pricing has been bearish over the past quarter, however, base metal prices have been declining for the better part of the year. More interesting to me, at least, is that the decline has been broad based – not specific to one commodity.
The same culprits of mill demand, lack of export market, tariffs and trade wars have been a staple of the causes. However, it now seems to be that global growth is also playing its part in weakening commodity pricing. It is hard to appreciate a slowing global economy from the perspective of what is happening in the Waterloo Region. But outside our bubble, there seems to be more and more pockets of slowing growth and demand and this is trickling down into base metal pricing. They don’t call copper the “Doctor’ for nothing.
I felt that this article is worth sharing because it is one of the first articles that I have reviewed that is tying in base metal pricing to our wider economy. It is not fear mongering – but educational and does a really good job in an efficient way of explaining what is going on. I would read this article for what it is – a good analysis of the theory meeting our reality of business – and what is happening out there is affecting all businesses equally.
I hope that you enjoyed your long weekends (if you got one) – we certainly did. I think that August has gotten a lot more interesting….
Naturally, if you have any questions or concerns about the market and how it may affect your scrap metal stream, please don’t hesitate to give me a call or an e-mail.
Amichai Tsarfati, CPA, CA
Ami Tsarfati at 4:34 PM
Raising Awareness for Prostate Cancer at Grand River-Hospital
Tuesday, May 28, 2019
One of our core values is supporting the community in which we raise our children and live our lives while having fun at the same time! We have been fortunate to be able to team up with CHYM in order to pull together this great event! The Father Daughter ball is a great community building event and this year alone, we managed to raise more than $30,000 for prostate cancer research at Grand River Hospital.
Ami Tsarfati at 4:13 PM
Scrap Chat - Market Analysis
Monday, May 13, 2019
Good morning everyone,
Given the recent trade spat between China and the US over the past weekend with their renewed vigor to tax, I mean tariff, their citizens, I thought that I would shed some light on our metals market. In addition, to share some trends that we are seeing with our client base and discussions with other yards in our region.
We are seeing what I think is a cyclical slowdown in automotive production and this, I believe, is having a major impact on the large sector of our manufacturing space that relying on the automotive market. We are seeing the impact on the high level by looking to our stock market (re: Magna just has a huge hit to their earnings) and the dealer incentives to move cars (impacting Honda and Toyota’s recent earnings). However, our manufacturing economy is larger than ‘just’ automotive.
I think what we are seeing is that the market is healthy, but not growing at the pace economist had predicted over the past few quarters. We are seeing healthy volumes of scrap come through our facilities and our consumers are telling us that they have no problems filling orders – so I don’t think we have a supply problem – and thereby a healthy manufacturing base. I think that we are seeing an area where mills have purchased enough supply to meet their needs for their foreseeable quarter or two and are moving to a buy when I need it mentality – and at the price I want to pay.
We are seeing this play out with mills with our consumers cutting their buys or of other mills reducing their buys, putting more scrap in the market. One thing that we have spoken about here in the past is the lack of export market to relieve this pressure, due to the tariffs on imported steel and aluminum. The de-facto result of the tariffs is creating a captive market where North American mills can decide the quality and quantity without concern of losing their flow of scrap metal feedstock.
So as the article I have attached from a recent AMM report on stainless notes – “The bloom is off the rose…”. This reality is not excluded to just nickel stainless, but we are seeing it across the board.
What we believe we are seeing here is a healthy cyclical process with the addition of tariff’s making the pricing more volatile. I haven’t seen base commodities being this politicized in my 15 years in the recycling industry. In the past, it was the investment bankers that were throwing the wrenches at us – now it is seems like everyone is.
We believe that we will be experiencing a tradition summer decline in commodity pricing across the board for scrap metal – with both ferrous and non-ferrous pricing coming under pressure. There will be spikes up and down, but overall, I feel the trend will not be our friend. Baring a resolution between China and the US, I don’t see a near term reversal. However, the decline in scrap metal pricing should predicate a lower new material pricing (although the tariffs are skewing this a tad) – always looking for the silver lining….
We cannot fight the market – but we can ensure that we are doing our job to best market your scrap materials and give you the tools to do efficiently and effectively. No rabbits being pulled out of a hat, just old fashion hard work and making sure that your getting the best value for your scrap metal.
If you have any questions about your scrap metal program give me a call or an e-mail.
Ami Tsarfati at 11:45 AM
Thank you to our community
Wednesday, May 8, 2019
THANK YOU – TO OUR COMMUNITY
On behalf of our team, we would like to thank our region’s emergency response teams for coming to our aid yesterday.
We experienced a small fire in our yard that our team was unable to contain, so we called 911. Our fire department was able to easily contain the isolated fire and get immediate aid to our team member who suffered some flash burns – who has since returned safely to work, thank goodness.
We would also like to extend a thank you to our customers and community members who have reached out to us in our challenging time to ensure that our team was safe and offered us support.
We take pride in being part of the fabric of our community. We are humbled by our community’s support in our challenging time.