The relationship between the stock market and the prices of commodities, including scrap metals, is complex and can be influenced by various factors. While there is no direct and consistent correlation between the stock market and scrap metal prices, some general patterns and influences can be observed:
Both the stock market and commodity prices, including scrap metal, can be influenced by broader economic conditions. During periods of economic growth and increased industrial activity, there may be higher demand for commodities, which can include scrap metals.
Industrial demand plays a significant role in determining the prices of commodities. Economic expansions often lead to increased manufacturing and construction activities, driving up the demand for raw materials, including metals. Conversely, economic downturns may result in reduced industrial demand and lower commodity prices.
Investor sentiment and market speculation can impact both stock prices and commodity prices. If investors perceive a positive economic outlook, they may be more inclined to invest in both stocks and commodities.
Currency fluctuations can influence commodity prices. In times of a weaker currency, commodities may become more attractive as a store of value, potentially impacting their prices.
Global factors, such as geopolitical events, supply chain disruptions, and changes in global demand, can affect commodity prices. This includes scrap metal, which is influenced by global demand for metals.
Inflation expectations can impact the prices of both stocks and commodities. Some investors may turn to commodities, including metals, as a hedge against inflation.
It’s important to note that while there may be some general trends, the relationship between the stock market and commodity prices is not always straightforward. Different commodities can respond differently to economic conditions, and various factors, including specific market dynamics for each commodity, can come into play.
If you are specifically interested in scrap metal prices, it’s advisable to monitor factors such as industrial demand, global economic conditions, and metal-specific supply and demand dynamics. Local factors, including recycling industry trends, can also influence scrap metal prices in a particular region. Additionally, commodities are influenced by a variety of market participants, and prices can be subject to volatility based on changes in supply and demand fundamentals.
Stock Market Rises
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.
Location | Material | Price |
|---|---|---|
| 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.
Location | Material | Price |
|---|---|---|
| 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 |
Other Markets
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.
