It may not be Valentine’s Day yet, but we absolutely love these Sundays. They didn’t surprise us and even after a quick bounce the previous week they’ve shown some resistance over the past few days. The sudden market jump we saw didn’t last long, but it did show us that a market floor could begin to form.
With the prices reported across the country and the field prices in very strong positions, we were able to see that the markets have stabilized and we have sent you this information. We monitor the overall markets and are happy with where we are and with the levels we have reached, even if there are smaller fluctuations (this is called trading). Steel and iron appear to have flattened from the dips we saw late last month and earlier this month.
Non Ferrous Prices
On the commodities side, we expect a closer look as markets return to positive territory in trading last week. These markets will follow the world activities. It looks like we’re seeing demand for consumer products that will continue to drive up metal prices despite negative financial news.
Over the last few weeks we have seen, read and discussed how the electric vehicle market and renewable energy boom will create demand for different materials such as copper, brass, steel, lithium. We can see these metals become one of the most sought after parts of the US and world economies for generations to come.
Non-Ferrous Price Chart of the Week
With oil and gas prices rising each month, we expect these price increases to start pushing metal prices higher in the second quarter. Rising fuel and transportation costs will affect scrap prices in the short run. We expect these markets to increase as we see continued improvements as winter ends and more supply chains are back on track.
Although the steel markets are on the decline, they are still in a very strong position compared to this time last year. We expect more manufacturing and supply chain issues around the world to temporarily escalate to get a better idea Demand Increases Non-Ferrous Prices.
Iron Price Chart of the Week
The battery market is becoming an undesirable area. With the EV takeover, we will see an increased recycling stream for batteries from electric vehicles – but many scrap yards don’t yet know how to use these batteries. This will lead to a lot of supply chain and recycling issues, while subsequent recyclers (i.e. your batteries are shipped after they go to the junkyard) are still installing large-scale recycling systems.
Recommended Reading: The Effects of Electric Vehicles on Copper Scrap
This is one of the biggest things we’re watching in 2022, as it will not only impact the recycling markets, but will also start to show the public/and scrap dealers how they can better handle this progress.