We used to say Will Scrap Prices Go Back Up in Return, where we thought the markets were and where they were going. Instead, we talk about what’s going on and how lucky the next few weeks, the next few days can be.
We don’t like the summer months at all because they mingle with all sorts of mixed messages, from travels to consumer demand to economic reports at the end of June and July. Looking at all these months, it is difficult to say where commodity prices will go. Contact us for metal scrap near me.
Beware of Yard Prices
Scrap yards are trying to be relatively aggressive, but that doesn’t make much sense right now. Will Scrap Prices Go Back Up in market movements over the past six months, most gardeners have withdrawn most of their aggression.
Some yards are still aggressive, but there may be a change soon. We’re seeing markets react differently than average and move similarly to early 2020 compared to mid-2021. This tells us that scrap yards will not be aggressive and are a little more cautious; This sums up the direction we think prices will go in the next few weeks.
Markets Will Remain Down
While we’ve seen a nice uptick since copper prices slumped above $1.75, we’ve seen $0.38 added to the market. We’re trying to be as positive as we can, but right now our markets are down and this will likely be the new normal for this year’s balance. A lot of people are trying to hold on to their metal and wait for $4.00 copper again (it could happen), but it probably won’t happen this year. In other words, whether you sell or hold according to your priorities; I hope some of our advice helps.
Gasoline and diesel prices continued to fall about 10¢ lower than last week. This trajectory is expected to increase further in the next few weeks. Still, as we enter hurricane season in the Atlantic, it’s imperative to keep a close eye on any developments that could threaten Gulf Coast refinery operations. We also wanted to highlight a few oil majors that reported gains to Wall Street in the previous quarter. Not surprisingly, they all reported record profits, particularly in the context of continued high prices where demand outpaces supply. The oil giants are still reluctant to add more capacity, even as the Biden administration continues to push them in that direction. We’ll see how this battle unfolds, but as prices are on a downward trend, there is little ground on which any federal authority can rely.
In the renewable energy world, Democrats in Congress have agreed on climate legislation. The $377 Billion proposal includes promoting clean energy generation here in the United States. It will expand tax credits to accelerate wind and solar construction. And those tax credits will also go to emerging energy technologies, such as carbon capture, which is preferred in fossil fuel producing areas.
What Clean Energy Is Being Built?
This bill significantly affects the determination of the types of clean energy being built. Tax credit support for wind and solar will help the industry grow further, which will require more types of materials than we’ve talked about in the past weeks. Since we covered the topic of solar energy last week, we want to illustrate wind technologies and the primary needs for the construction and rework of wind turbines.
Wind turbines require large amounts of steel in terms of energy density. About 70% of steel production uses coal as an energy source. Given the high natural gas price environment we are currently in, this share may increase in the short term without a significant decrease. Below is a good infographic that explains the materials needed to build a wind turbine.