Showing posts with label in. Show all posts
Showing posts with label in. Show all posts

Saturday, August 9, 2014

Today's Raleigh, NC Scrap Metal (and Junk Cars) Recycling Current Prices per Pound in NC for Copper, Aluminum, Junk Cars, Salvage Yards, Autos Durham, Salvage

Today's Raleigh, NC Scrap Metal
Junk cars - Salvage cars
Recycling Prices Per Pound
In Raleigh, NC, Cary, NC, Durham, NC
Sell Your Junk car for Cash
We Buy Junk Cars

Recycling Prices- 8/9/14

For Copper, Aluminum, Steel
SCRAP METAL BUYERS!

Raleigh Recycling Center
Junk Yard, Salvage Yard
919-828-5426
Raleigh Metal Recycling
2310 Garner Road
Raleigh, NC

-Great Prices

-Outstanding Service

-Industrial Pick Up and Public Drop off

-11 Digital Scales to get you in and out-FAST!
-Junk Cars-We TOW, or you Drive in, or Tow in

Scrap metal prices have been steady.  Almost no change, but we do think that copper may come down.  See below, an article that China remains a major importer of scrap.  We are doing our best to pay the most we can.  See the bottom of this email for some other thoughts on the market.
Raleigh Metal Recycling here in Raleigh, NC, is where always do our best to pay you the most for scrap metal every day.  We communicate 24/7 with you, our prices to make it easy for you. When you call our phone number 919-828-5426 and press 2, you will hear a recording with "Today's prices" where we buy and sell scrap metal at great prices per pound.  This is for:
 

-Steel Recycling

-Cast Iron Recycling

-Copper Recycling

-Yellow Brass Recycling

-Red Brass Recycling

-Aluminum Recycling

-Aluminum Can Recycling

-Appliance Recycling

-Computer Recycling

-Electronics Recycling

-Junk Cars

-Salvage Cars

-Stainless Steel Recycling

-Battery Recycling

-and more.





 NC Scrap Metal is always welcome at Raleigh Recycling

We continue to have a three part focus at Raleigh Recycling
1) Public (Drop off)-or we pick up Junk Cars
2) Industrial/Commercial customers
3) Demolition Customers

If you are a large Commercial, Industrial or Demolition company, you should call call me, Greg at 919-828-5426.  We can give you prices for scrap metal, Cardboard, Copper, Electronics, Computers and more.

Or for just Appliances Disposal, Appliance Pick Up or Junk Metal removal, just call Kenny at 919-348-0545!
An important part of our company is that we have 11 digital, NC State certified scales that we use to service our Industrial and Commercial Customers.  Almost double our closest competitor, meaning we get you in and out fast and with accuracy!  We are not just a Junk Yard or a Salvage Yard, or even a Scrap Yard.  We are a major Raleigh NC, Recycling Center.

Importantly, we sell direct to Steel mills or divisions of steel mills, not to middle men who take a commission, so we pass that savings on to you!  We even ship our steel out mostly by rail car (not trucks) to save money in shipping, which we pass on to you

JUNK CARS, Salvage Cars
1) WE TOW-JUNK CAR-JUNK CAR REMOVAL
-Junk Car Pick Up!-Get Cash on the spot
-Sell your junk car for cash
-Any condition, running or no
t running
-Keys or no keys, engine or no engine
-Call 919-758-3764 for:

 JUNK CAR REMOVAL, Junk Car Towing


2) Drive it in, or you tow it in!-Get Cash on the spot
-Any condition
-In and out fast!
-Sell your junk car for cash
Come to us at:
Raleigh Metal Recycling
2310 Garner Road
Raleigh, NC 27610
Telephone- 919-828-5426


When in Raleigh, Durham, Apex, Butner, Cary, Chapel Hill, Clayton, Dunn, Garner, Henderson, Knightdale, Lumberton, Oxford, Mebane, Morrisville, Roxboro, Sanford, Smithfield, Wake Forest, Burlington, Fayetteville, Fuquay-Varina, come see us at:

Raleigh Recycling
2310 Garner Rd.
Raleigh, NC 27610

Tel 919-828-5426
www.raleighscrapmetalrecycling.com


When in Goldsboro, LaGrange, Kinston, Mt. Olive, Smithfield, New Bern, come see us at:

Goldsboro Recycling
801 N. John St.
Goldsboro, NC 27530

Tel: 919-731-5600
www.goldsboroscrapmetalrecycling.com 

When in Wilson, NC, Tarboro, NC, Rocky Mount, NC, come see us at:

Wilson Scrap Metal Recycling J & G
404 Maury Road S
Wilson, NC, 27892
Tel 252-243 3586

www.wilsonncscrapmetalrecyclingjg.com
Greg Brown
gbrown@raleighscrapmetalrecycling.com
Tel 919-828-5426

Links

Scrap Metal Recycling

Junk Car Sell for cash, Junk Car Removal

  Appliance

CMRA says China imported 3.7 million tons of scrap in June

Nonferrous, International Recycling News

Government statistics show $2 billion worth of copper-related imports in June 2014.




The Beijing-based China Nonferrous Metals Industry Association Recycling Metal Branch (CMRA) says data released by China Customs show that in June 2014 China imported 3.7 million tons of scrap commodities, including metal, paper and plastic scrap.

The value of the 350,000 tons of “unwrought coppers and copper products” imported in June was $2.65 billion, according to CMRA, representing a “slight dip” from the previous month.

In its monthly news notice to members, CMRA also says Chinese government agencies continue to seek action regarding perceived overcapacity in several metals production sectors.

China’s Ministry of Industry and Information Technology (MIIT) has reportedly been assigned “a mission of eliminating the backward and overcapacity [in] provinces countrywide” in several industry sectors, including:
  • 19 million tons of annual iron production;
  • 28.7 million tons of steel production;
  • 420,000 tons of electrolytic aluminum and copper (including recycled copper) smelting; and
  • 512,000 tons of lead (including secondary lead) smelting.

The CMRA News Express email also includes results of a China Inspection & Quarantine Services (CIQ) investigation of scrap shipments imported by processors in the Yingtan copper scrap processing zone in Jiangxi Province. Companies in the zone claim they have been receiving short-weighted shipments.

CIQ says it found “26 underweight batches occurring in the Yingtan copper dismantling and processing zone from January to June, which accounted for 13.9 percent of the total batch inspect[ed]. The amount of short weight was 8,661 kilograms (19,000 pounds), with the average rate of 2.66 percent [per shortage].” Pick Up, Appliance recycling

 
 

Saturday, July 12, 2014

Today's Scrap Metal (and Junk Cars), Current Prices per Pound for Copper, Junk Cars, Aluminum, in Raleigh, NC, Salvage Yard, Durham, Cary

Today's Scrap Metal
Recycling Prices Per Pound
In Raleigh, NC, Cary, NC, Durham, NC
Recycling Prices- 7/12/14
For Copper, Aluminum, Steel
SCRAP METAL BUYERS!
Raleigh Recycling Center
Junk Yard, Salvage Yard
919-828-5426
 
Raleigh Metal Recycling
2310 Garner Road
Raleigh, NC
 
-Great Prices
-Outstanding Service
-Industrial Pick Up and Public Drop off
-11 Digital Scales to get you in and out-FAST!
-Junk Cars-We TOW, or you Drive in, or Tow in

Copper Scrap metal prices are up a lot this week,  right here in Raleigh, NC!

Raleigh Metal Recycling here in Raleigh, NC, is where always do our best to pay you the most for scrap metal every day.  We communicate 24/7 with you, our prices to make it easy for you. When you call our phone number 919-828-5426 and press 2, you will hear a recording with "Today's prices" where we buy and sell scrap metal at great prices per pound.  This is for:
 
-Steel Recycling
-Cast Iron Recycling
-Copper Recycling
-Yellow Brass Recycling
-Red Brass Recycling
-Aluminum Recycling
-Aluminum Can Recycling
-Appliance Recycling
-Computer Recycling
-Electronics Recycling
-Junk Cars
-Salvage Cars
-Stainless Steel Recycling
-Battery Recycling
-Cardboard Recycling
-and more.


 NC Scrap Metal is always welcome at Raleigh Recycling
We continue to have a three part focus at Raleigh Recycling
1) Public (Drop off)-or we pick up Junk Cars
2) Industrial/Commercial customers
3) Demolition Customers
If you are a large Commercial, Industrial or Demolition company, call me, Greg at 919-828-5426 to discuss prices.  We can give you prices for scrap metal, Cardboard, Copper, Electronics, Computers and more.

Or for just Appliances Disposal, Appliance Pick Up or Junk Metal removal, just call Kenny at 919-348-0545!

 
An important part of our company is that we have 11 digital, NC State certified scales that we use to service our Industrial and Commercial Customers.  Almost double our closest competitor, meaning we get you in and out fast and with accuracy!  We are not just a Junk Yard or a Salvage Yard, or even a Scrap Yard.  We are a major Raleigh NC, Recycling Center.

Importantly, we sell direct to Steel mills or divisions of steel mills, not to middle men who take a commission, so we pass that savings on to you!  We even ship our steel out mostly by rail car (not trucks) to save money in shipping, which we pass on to you

JUNK CARS, Salvage Cars

1) WE TOW-JUNK CAR-JUNK CAR REMOVAL
-Junk Car Pick Up!-Get Cash on the spot
-Sell your junk car for cash
-Any condition, running or not running
-Keys or no keys, engine or no engine


-Call 919-758-3764 for
JUNK CAR REMOVAL,
 
Junk Car Towing

2) Drive it in, or you tow it in!
-Get Cash on the spot
-Any condition
-In and out fast!
-Sell your junk car for cash
Come to us at:
 
Raleigh Metal Recycling
2310 Garner Road
Raleigh, NC 27610
Telephone- 919-828-5426

If you want to Junk my car for cash, and get cash for my junk car, call or come see us!


When in Raleigh, Durham, Apex, Butner, Cary, Chapel Hill, Clayton, Dunn, Garner, Henderson, Knightdale, Lumberton, Oxford, Mebane, Morrisville, Roxboro, Sanford, Smithfield, Wake Forest, Burlington, Fayetteville, Fuquay-Varina, come see us at:

Raleigh Recycling
2310 Garner Rd.
Raleigh, NC 27610

Tel 919-828-5426
www.raleighscrapmetalrecycling.com


When in Goldsboro, LaGrange, Kinston, Mt. Olive, Smithfield, New Bern, come see us at:

Goldsboro Recycling
801 N. John St.
Goldsboro, NC 27530

Tel: 919-731-5600
www.goldsboroscrapmetalrecycling.com 

When in Wilson, NC, Tarboro, NC, Rocky Mount, NC, come see us at:

Wilson Scrap Metal Recycling J & G
404 Maury Road S
Wilson, NC, 27892
Tel 252-243 3586

www.wilsonncscrapmetalrecyclingjg.com
 
Greg Brown
gbrown@raleighscrapmetalrecycling.com
Tel 919-828-5426


Links

Scrap Metal Recycling

Junk Car Sell for cash, Junk Car Removal

Thursday, June 26, 2014

Raleigh NC Scrap Metal Recycling Prices Per pound for Copper, Aluminum, Steel - a Great Salvage, Scrap Yard, 27610

Raleigh NC
Scrap Metal Recycling
Copper, Aluminum, Steel and More
Raleigh Metal Recycling
FOR GREAT PRICES CALL:
919-828-5426
 
Raleigh Metal Recycling in Raleigh, NC is the largest and highest Full Service Scrap Metal Operation in the greater Raleigh, NC area.  We have a fleet of 15 drivers on our staff, along with our Goldsboro operation 47 miles away, to support you and your projects.  This would be for Demolition Project or Industrial Plants.  Durham, NC, Cary, NC, Apex, NC are markets we service daily.  Importantly we have great service and great scrap metal prices for copper and more.
 
We have every type of Roll off box, open top Trailer or Van trailer that you would ever need.  Just call us at 919-828-5426 and we will support your needs.
 
We are not just a Junk Yard, Scrap Yard or even a Salvage Yard, we are the best in what a Raleigh Recycling Center should be.  For the best service, we have almost twice as many DIGITAL scales as our nearest competitor. 
 
As for Junk Cars and Salvage Cars, you have two options
 
 
1) We Tow! Call 919-758-3764
Junk Car removal for cash, junk my car for cash at Raleigh Metal Recycling!

or

2) Drive it in, Tow it in!
 
Raleigh Metal Recycling
2310 Garner Road,
Raleigh, NC, 27610
 
 
If you want to junk your car with no title for cash, you can sell your car to us, as long as it is 10 model years or older. 
 
We also can arrange for Appliance Pick up.  For one unit only $20, if two more FREE! in the Raleigh area.  City of Raleigh Appliance Pick Up at its best!  Great way to remove old appliances, Appliance Recycling.  Call 919-348-0545
 
Call us or come see us AT
RALEIGH METAL RECYCLING
2310 GARNER ROAD
RALEIGH, NC, 27610
 
Greg Brown
919-828-5426
 
As for some information in the market, see comments we have been sent:
 
PBC & the Fed: We started the week with the Peoples Bank of China lowered their reserve ratio requirement by 50 basis points early last week and reaffirmed a 7.5% growth rate for the rest of this year.
 
Then the Fed cut bond purchases by an additional $10 billion and will keep short term interest rates near zero until sometime next year. Fed chair sees economic activity rebounding in the current quarter and dismissed as “noisy” recent increases in inflation, keeping with their long term view of economic activity and not having any knee jerk reaction to recent data. Fed officials predict the benchmark federal funds rate would hit 1.2% by the end of 2015 and 2.5% by the end of 2016, up from the previous projection.
 
The Chinese investigation into Qingdao continues with customs official taking longer to clear metal imports through customs. What used to take 7 days now takes up to a month, iron ore imports are down 7% and copper down 16% from a month prior. The premium over spot copper for immediate delivery into Shanghai warehouses has dropped from $185 per ton in December to $70, indicating more want to sell rather than hold stocks. While aluminum has enjoyed a sustained rally, copper remains near recent lows. One trader said there is downside risk while no real upside in the near future.

As the last week of June is upon us, expect trading to stagnate as we move into the summer doldrums; traders take holiday for the summer and trading volumes remain low.
 

 
 
 



Monday, January 20, 2014

Raleigh, NC Today's Scrap Metal Recycling Prices Per Pound, Durham, Steel, Copper, Aluminum

Raleigh, NC

Today's Scrap Metal Prices
Durham, NC
Recycling -1/20/14
 
 
-Great Prices
-Outstanding Service
-Industrial Pick Up and Public Drop off
-11 Digital Scales to get you in and out-FAST!
-Junk Cars-We TOW, or you Drive in, or Tow in
 
Scrap metal prices are fairly stable this week.   See the article below on copper.  Steel has continued to stay high and we are not sure how long that will stay like that.  It is the second month in a row that Steel prices are up.  Note though that due to the significantly lower prices of Copper and Aluminum in recent months, prices for items such as appliances, and mixed metals did not go up at this point. 
 
Raleigh Metal Recycling here in Raleigh, NC, we always do our best to pay you the most for scrap metal every day.  We communicate 24/7 with you, our prices to make it easy for you. When you call our phone number 919-828-5426 and press 2, you will hear a recording with "Today's prices" where we buy and sell scrap metal at great prices per pound.  This is for:
 
-Steel Recycling
-Cast Iron Recycling
-Copper Recycling
-Yellow Brass Recycling
-Red Brass Recycling
-Aluminum Recycling
-Aluminum Can Recycling
-Appliance Recycling
-Computer Recycling
-Electronics Recycling
-Junk Cars
-Salvage Cars
-Stainless Steel Recycling
-Battery Recycling
-and more.


 NC Scrap Metal is always welcome at Raleigh Recycling


We continue to have a three part focus at Raleigh Recycling
1) Public (Drop off)-or we pick up Junk Cars
2) Industrial/Commercial customers

3) Demolition Customers

If you are a large Commercial, Industrial or Demolition company, you should call our Grant Kiser at 919-710-3805 to discuss prices or call me, Greg at 734-740-9514.  We can give you prices for scrap metal, Cardboard, Copper, Electronics, Computers and more.

Or for just Appliances Disposal or Junk Metal removal, just call Kenny at 919-348-0545!
 
An important part of our company is that we have 11 digital, NC State certified scales that we use to service our Industrial and Commercial Customers.  Almost double our closest competitor, meaning we get you in and out fast and with accuracy!  We are not just a Junk Yard or a Salvage Yard, or even a Scrap Yard.  We are a major Raleigh NC, Recycling Center.

Importantly, we sell direct to Steel mills or divisions of steel mills, not to middle men who take a commission, so we pass that savings on to you!  We even ship our steel out mostly by rail car (not trucks) to save money in shipping, which we pass on to you

JUNK CARS, Salvage Cars

1) WE TOW-JUNK CAR-JUNK CAR REMOVAL
-Get Cash on the spot
-Any condition, running or not running
-Keys or no keys, engine or no engine
-Call 919-758-3764 for JUNK CAR REMOVAL, Junk Car Towing!

2) Drive it in, or you tow it in!
-Get Cash on the spot
-Any condition
-In and out fast!
Come to us at:
 
Raleigh Metal Recycling
2310 Garner Road
Raleigh, NC 27610
Telephone- 919-828-5426


When in Raleigh, Durham, Apex, Butner, Cary, Chapel Hill, Clayton, Dunn, Garner, Henderson, Knightdale, Lumberton, Oxford, Mebane, Morrisville, Roxboro, Sanford, Smithfield, Wake Forest, Burlington, Fayetteville, Fuquay-Varina, come see us at:

Raleigh Recycling
2310 Garner Rd.
Raleigh, NC 27610

Tel 919-828-5426
www.raleighscrapmetalrecycling.com


When in Goldsboro, LaGrange, Kinston, Mt. Olive, Smithfield, New Bern, come see us at:

Goldsboro Recycling
801 N. John St.
Goldsboro, NC 27530

Tel: 919-731-5600
www.goldsboroscrapmetalrecycling.com 

When in Wilson, NC, Tarboro, NC, Rocky Mount, NC, come see us at:

Wilson Scrap Metal Recycling J & G
404 Maury Road S
Wilson, NC, 27892
Tel 252-243 3586

www.wilsonncscrapmetalrecyclingjg.com
 
 
Greg Brown
gbrown@raleighscrapmetalrecycling.com
Tel 919-828-5426


Links

Scrap Metal Recycling

Junk Car Sell for cash, Junk Car Removal
  
Copper price rises slightly, downward pressure ahead
Global Times | 2014-1-19 22:33:01
By Yu Xi in Shanghai
The most-traded copper contract for delivery in April rose by 0.17 percent on the Shanghai Futures Exchange (SHFE) Friday, finishing at 51,810 yuan ($8,569.9) per ton, up 1.03 percent week-on-week.

The slight gain was partly driven by a recent decline in copper storage, both domestically and internationally. According to a report by Zhengzhou, Henan Province-based Futures Daily last week, copper storage by London Metal Exchange-registered warehouses has declined from 663,100 tons in July 2013 to 340,700 tons currently.

Also, copper storage by SHFE-registered warehouses decreased from 182,400 tons in July to 122,000 tons currently, with rising storage costs being the main reason for the reduction, the report said.

But when copper storage stabilizes, there is unlikely to be a significant rebound, and downward pressure on copper prices will remain due to the sluggish demand currently, according to a report by China Securities Journal (CSJ) Thursday.

Global copper supply saw a surplus of 442,000 tons from January to October 2013, the CSJ report said, citing data from the World Bureau of Metal Statistics. Global copper production capacity is expected to increase significantly in the coming years, so a further rise in supply is expected in 2014 and 2015.

Meanwhile, the copper market has been affected by concerns over whether the US Federal Reserve will continue to reduce its stimulus program, given the moderate recovery seen recently in the US economy, according to a report by Reuters Thursday.

"The main theme is that we'll see a more hawkish stance from the Fed moving forward. In line with that we'll continue to see a strong dollar, which will place downward pressure on commodities prices, including metals," Reuters quoted analyst Tim Radford of Sydney-based adviser Rivkin as saying.

 
 

 
 

Monday, December 16, 2013

Today's Raleigh, NC Scrap Metal Recycling prices for Copper and Aluminum

Today's Scrap Metal Prices

in Raleigh, NC, Durham, NC
Recycling -12/16/13
 
 
-Great Prices
-Outstanding Service
-Industrial Pick Up and Public Drop off
-11 Digital Scales to get you in and out-FAST!
-Junk Cars-We TOW, or you Drive in, or Tow in
 
Today's prices for Scrap metal:Steel and Copper are steady this week.  The good news is we raised copper last week!  As many know, prices remain lower then the highs of years ago.  See the article below about the equipment company CAT (Caterpillar) that is a major supplier to the mining, metals industry.
 
Raleigh Scrap Metal Recycling here in NC, has a goal to do our best to pay you the most for scrap metal every day.  We also try to communicate the price to make it easy for you. When you call our phone number 919-828-5426 and press 2, you will hear a recording with "Today's prices" where we buy and sell scrap metal at great prices per pound.  This is for:
 
-Steel
-Cast Iron
-Copper
-Yellow Brass
-Red Brass
-Aluminum
-Aluminum Cans
-Appliances
-Computers
-Electronics
-Junk Cars
-Salvage Cars
-Stainless Steel
-Batteries
-and more.


We continue to have a three part focus at Raleigh Recycling
1) Public (Drop off)-or we pick up Junk Cars
2) Industrial/Commercial customers
3) Demolition Customers


If you are a large Commercial, Industrial or Demolition company, you should call our Grant Kiser at 919-710-3805 to discuss prices or call me, Greg at 734-740-9514.  We can give you prices for scrap metal, Cardboard, Copper, Electronics, Computers and more.

Or for just Appliances or Junk Metal removal, just call Kenny at 919-348-0545!
 
An important part of our company is that we have 11 digital, NC State certified scales that we use to service our Industrial and Commercial Customers.  Almost double our closest competitor, meaning we get you in and out fast and with accuracy!  We are not just a Junk Yard or a Salvage Yard, or even a Scrap Yard.  We are a major Raleigh NC, Recycling Center.

Importantly, we sell direct to Steel mills or divisions of steel mills, not to middle men who take a commission, so we pass that savings on to you!  We even ship our steel out mostly by rail car (not trucks) to save money in shipping, which we pass on to you

JUNK CARS, Salvage Cars

1) WE TOW-JUNK CAR-JUNK CAR REMOVAL
-Get Cash on the spot
-Any condition, running or not running
-Keys or no keys, engine or no engine
-Call 919-758-3764 for JUNK CAR REMOVAL!

2) Drive it in, or you tow it in!
-Get Cash on the spot
-Any condition
-In and out fast!
Come to us at:
 
Raleigh Metal Recycling
2310 Garner Road
Raleigh, NC 27610
Telephone- 919-828-5426


When in Raleigh, Durham, Apex, Butner, Clayton, Garner, Henderson, Oxford, Morrisville, Smithfield, Wake Forest, Burlington, Fayetteville, come see us at:

Raleigh Recycling
2310 Garner Rd.
Raleigh, NC 27610

Tel 919-828-5426
www.raleighscrapmetalrecycling.com


When in Goldsboro, LaGrange, Kinston, Mt. Olive, Smithfield, New Bern, come see us at:

Goldsboro Recycling
801 N. John St.
Goldsboro, NC 27530

Tel: 919-731-5600
www.goldsboroscrapmetalrecycling.com 

When in Wilson, NC, Tarboro, NC, Rocky Mount, NC, come see us at:

Wilson Scrap Metal Recycling J&G
404 Maury Road S
Wilson, NC, 27892
Tel 252-243 3586

www.wilsonncscrapmetalrecyclingjg.com
 
 
Greg Brown
gbrown@raleighscrapmetalrecycling.com
Tel 919-828-5426

Scrap metal Raleigh, NC, Durham, NC

Appliance Pick up, Appliance Removal, Junk Metal Pick up

Junk Car for Cash-Junk Car Removal-Towing
 
 
Caterpillar Has A China Problem
 
Disclosure: I am long FCX. (More...)
Needless to say, 2013 has been a challenging year for Caterpillar (CAT). Shares are down 4% while the market has rallied significantly to new heights, and management has called the bottom incorrectly several times with repeated disappointments and guidance cuts. In some ways, Caterpillar has been a victim of circumstances. With falling metal prices and over-levered miners, they have had to cut mining activities and capital expenditures, crushing demand for CAT machinery. Caterpillar's management does deserve blame for not seeing the massive slowdown, guiding to it, and preparing for it, but it cannot be blamed for fluctuations in commodity prices.

(Click to enlarge)
Now, management has guided to a flat performance in 2014 with sales within 5% of 2013 after a 17% drop from 2012 (full guidance available here). This suggests EPS of about $5.50, plus or minus $0.40 and a forward multiple of 15.6x. As you would expect, mining will be the weakest segment at Caterpillar after falling 40% this year. I had been targeting a 10-15% decline next year, which will erase stabilization and mild improvement at the construction and power units.
With miners, particularly those involved with gold, cutting capital plans next year, it is not surprising to see Cat's mining supply unit the weakest. Freeport-McMoRan (FCX) has promised shareholders a $1.9 billion cap-ex reduction while gold miners like Newcrest and Barrick Gold (ABX) have suspended projects after taking multi-billion write-downs. Barrick is mothballing its Pascua-Lama project, laying off hundreds of workers, after a dilutive secondary. Even diversified giants like Rio Tinto (RIO) and BHP Billiton (BHP) have promised restraint in their capital plans until metal prices start to show sustained improvement.
All of this signals problems for Caterpillar, and the company has been fighting to maintain share and simply suffer along with the market. To lose share in an eroding market would be catastrophic for results. This is my new concern. For years, China had been the savior of machinery equipment firms like CAT and Joy Global (JOY) because the country was consuming so much raw material (boosting prices and thereby cap-ex) without having any companies that could supply machinery of similar quality. As a consequence, CAT got the benefit of the new market without any additional competition. However, this might be changing.
Rio Tinto CEO Sam Walsh has said his firm has begun to buy equipment from Chinese firms and that the quality has been "much higher" than from traditional suppliers (remarks available here). No Chinese firm yet has the scale or brand of Caterpillar, but if some are beginning to churn out equipment of similar or better quality, CAT will have to fight more aggressively for share, especially as many of these firms enjoy significant cost advantages, operating solely in China.
With China a critical end-market and the importance of currying favor with the regime, miners may very well be interested in purchasing equipment from Chinese firms. For Caterpillar, the market is growing increasingly competitive just at the wrong time: when sales are in sharp decline. Lost share or a price war would only exacerbate the company's growth problem. Now, it should not surprise anyone that China is catching up on quality as that is really a matter of time and effort in studying best practices and existing machines.
Moreover, Caterpillar saw this day coming as the company made an $800 million purchase of a Chinese equipment maker, ERA Mining Machinery, last year. Clearly, CAT wanted to gain a production foothold in China and saw a manufacturer whose product quality was worth owning. Of course, this deal has not worked out well for CAT with the revelation that the books were cooked forcing a $580 million write-down (details available here). While CAT clearly targeted the wrong firm, it is equal clear that CAT saw China-made equipment it wanted in its portfolio. It is not surprising then that other Chinese firms are delivering high quality products.
After this news, I am more concerned about Caterpillar than I was before. Given management's track record of over-optimism and tremendous structural weakness in the mining sector, I thought the bottom half of 2014 guidance was more likely, suggesting EPS in the $5.25-$5.50 range. However, if we see price degradation or lost market share, mining declines will be worse, pushing EPS even lower. Equally important, over the long run beyond 2014, CAT's rebound will inevitably be slower as it fends off fierce competition from China. At $86 Caterpillar is appreciably over-priced, and I would be a buyer at no more than 13x earnings or $71. The machinery space is too bad, and investors would be far better owning a high quality miner like Freeport or non-mining machinery company like Deere (DE).