Stock Market Rises, Scrap Rises Too? We hope everyone is enjoying the beautiful weather and everyone who has been or will be affected by the Tornados or the flood you experienced is doing the best possible.
As metal prices are so volatile right now, we’re watching the markets and trying to figure out how to get some in, and here’s what we’ve found. Many people (including the Chinese) want markets and hope they will increase, but they know that the key to long-term sustainability is to strike a trade deal. Getting rid of tariffs would be like pulling the monkey off the backs of commodities and could open up much more for the economy.
If we’re not lucky enough to strike a deal (but we’re hopeful after hearing news over the weekend that the Chinese are looking to get back on track), it could possibly lead to a recession this year or early next year. One thing we saw last week was a huge jump in gold prices (over $40 an ounce) partly due to trade disputes and potential tariffs in Mexico.
Non-Ferrous Market News
With the positive news from the world of tariff negotiations, we hope to see the talks between China and the US flare up again. We saw the markets flatten out last week and overall it was a pleasant place given the rocky May we saw. Gold was the hottest metal in the past week as prices rose due to tariff talks with Mexico. While many would say that the tariffs really hurt scrap prices (make no mistake – they did), but in the long run we might be better off thanks to them.
Suggested Reading: What Are Metal Tariffs and How Do They Affect Scrap?
The aluminum market and most of the others are in a straight line right now and there is hardly any movement. It was very difficult to really know what was going on as the markets were flooded with news everywhere but there wasn’t much movement.
|Frankfort, KY||Brass||$1.26 / lb|
|Rockaway, NJ||#1 Bare Bright Copper Wire||$2.35 / lb|
|Schofield, WI||Aluminum Cans||$0.35 / lb|
|Beaver Woods, WV||#2/3 Mix Copper||$2.00 / lb|
|Lewistown, PA||Insulated Copper Wire||$0.80 / lb|
|Alvin, TX||Yellow Brass||$1.45 / lb|
|Lafayette, IN||400 Series Stainless Steel||$0.50 / lb|
|Des Moines, IA||#1 Copper Tubing||$2.00 / lb|
|Elizabeth, NC||#2 Copper Tubing||$1.70 / lb|
|Montreal, Quebec*||AL Extrusion||$0.62 / lb|
|Cincinnati, OH||Aluminum Siding||$0.30 / lb|
|Brooklyn, NY||Stainless Steel||$0.30 / lb|
Iron Scrap Market News
Steel and iron are showing minor signs of recovery as the market increased $5-10 per tonne over the past week. Will this last? Who knows, at this point, everyone is waiting for the meeting at the G20 Conference in two weeks. This will be one of the most talked about and anticipated meetings among world leaders and will leave a lot to see and could lead to big changes in metals.
With the Chinese producing 50% of the world’s steel, it is very difficult to know how the tariffs will affect this market. However, the removal of some tariffs will also affect non-ferrous markets for some copper-containing products, including insulated copper wire and steel.
|Thief River Falls, MN||#1 Prepared||$90 /ton|
|Chesapeake, VA||Light Iron||$80 /ton|
|Alvin, TX||Scrap Iron||$100 /ton|
|Newport, AR||#1 Steel||$120 /ton|
|New Orleans, LA||Cast Iron||$80 /ton|
|Norfolk, NE||#1 Prepared||$135 /ton|
|Albertville, AL||#1 Steel||$110 /ton|
|Coshocton, OH||#1 HMS||$270 /ton|
|Williamsport, PA||Cast Iron||$80 /ton|
|Lithonia, GA||Shreddable Steel||$30 /ton|
|Anchorage, AK||Cast Iron||$30 /ton|
Gold shone last week, but it didn’t have much of an impact on the electronics side as the markets were depressed by the ongoing tariffs. One important thing to remember is that with tariffs on China, the rest of the world knows that they don’t have to overpay, which in turn drives scrap prices down.