While this news isn’t very heartening, let’s try to look on the bright side. At least when the automakers go to purchase steel to make cars, the steel will be at a greatly reduced rate so they should be able to cut their losses to the point they may actually make money. And, according to our good President Obama, this would bode well for the US population because if GM and Chrysler can be turned around and make money, our investment of however many billions of dollars will pay off and we’ll all get additional tax breaks. So, there you have the silver lining to the dark cloud of the depressed steel market outlook. It’s ok, no need for a standing ovation, just send me money so I can buy one of those new cars.

Steel markets continue to be soft and the price of ferrous material continues to slide a little. So, if scrap recycling and steel manufacturing tend to be leading indicators of economic recovery, it looks like we’re still some ways off. But, I don’t think that at this point, that kind of news is startling to anyone.

I would rather look at things that are going right. For instance, home sales in the month of February actually increased. And, take a look at this article. Yes, we made it to the pages of Recycling Today. Pacific chooses to take advantage of the opportunities that are present due to the recession. Good things continue to happen and it is up to each of us to stop wallowing in all the negative garbage around us and try to focus on those things that are right. By doing so, our attitude will catch on with others and the movement begins to grow.

Last week, Nucor dropped the price dramatically on some steel shapes. Now, we hear of some steel plants shutting down. See stories here and here. The stocks of steel companies continue to be hammered. And yet, notwithstanding, I have yet to hear about a single steel company going to the federal government looking for a handout. I think that is admirable. Hopefully, the wheels of the stimulus package aimed at construction and infrastructure will begin to turn a little faster soon. Then we will start seeing some real recovery.

Even though steel production was down in November, scrap iron prices actually went up in December. From the reports I have read, it appears US steel mills will take some additional time off here at the end of the year, which should push prouction down even further. Which leads to the question of what caused the upswing? Recycling Today didn’t have an answer – do you? Whatever the reason, here’s hoping that it is a trend that will continue, especially as the steel mills resume production in January.

You can tell those companies that have spent the last few bull years building themselves up with a long-term strategy – they are the ones that are now continuing to move forward with business, albeit with caution. They are looking for opportunities to grow their market share and to continue with other growth strategies. They have taken the stance that simply hunkering down is what leads to losing market share in the long term and are proactive in their efforts instead.

These types of companies accomplish two things – one is, they help keep the economy from slipping further down and second, they set themselves up to be big winners once the economy gets clicking again. The point is, when the economy gives you lemons, make lemonade.