With so much information being out there about the commodity prices changed, the new cancellation of the Iran deal, and copper continuing to fluctuate it has certainly been a busy 2018. We have seen the world changing and metals continue to soar and many of the restrictions that may have been put into place starting in May have a look to started to be negotiated.
Where the market is going is a mystery because of the massive amount of questions that are out there. Copper has fallen over the last week and steel prices have also declined. One item that has been particularly weak over the last week has been the light iron market.
Let’s dive a little deeper into what’s going on and where we think of market could be headed over the next few weeks in few months.
Non-Ferrous Scrap Market
With copper prices retreating about $0.07/lb. a pound week over week, we have seen scrap yards immediately dropping their prices. Not only because of the actual copper trading market dropping, but because of the concerns and fears with the CCIC (China’s Import Governing Body) stopping all shipments into China for at least 30 days.
What does that mean for the copper market? Well, it immediately starts with the insulated copper wire market as well as other low-grade items which we have talked about over the last few months. But also will start to affect the raw copper prices for bare bright and #1 copper tubing.
We expect this to be a very rough month for copper prices with the market dropping immediately at scrap yards and continuing the drop even further. You may see prices drop $0.10-$0.20 per pound on different grades of insulated copper wire as well as price drops on other metals like brass.
The aluminum market has been a very strange market as well with the sanctions and tariffs that are going to go into place being temporarily postponed for certain countries. Where the market is going to go from here is yet to be seen, but there still continues to be a massive amount of questions on how it’s going to go and when it’s going to move in the upward direction.
Reported Non-Ferrous Prices (5/2 – 5/8):
- Flowood, MS: Electric Motors (Copper), $0.20/lb.
- Rockaway, NJ: #1 Bare Bright Copper Wire, $2.71/lb.
- Farmington, NH: Aluminum Rims, $0.58/lb.
- New York, NY: #1 Bare Bright Copper Wire, $2.55/lb.
- Mineola, TX: Brass, $1.75/lb.
- Mauston, WI: Car/Truck Batteries, $0.32/lb.
- Sterling Heights, MI: Sheet Aluminum, $0.37/lb.
- Prince Albert, Saskatchewan*: #2 Copper Tubing, $2.70/lb.
- Holly Hill, FL: Insulated Copper Wire, $0.65/lb.
- Pensacola, FL: Brass Shells, $1.65/lb.
- Omaha, NE: Electric Motors, $0.28/lb.
- Wichita, KS: Aluminum 6063, $1.00/lb.
Ferrous Scrap Markets
Steel market has been hit for the last month or so going down on average $20 per ton, but the big hit is happening right now. With the Chinese putting a large restriction on imports, we saw a light iron prices drop $30 per ton on average on the East Coast and starting to spread throughout the rest of the US.
Huge Drop in Steel Prices
While steel continues to be a very coveted commodity, it seems like there has been a lot more flowing into the markets and we are in a wait-and-see mode to see how the prices shake out. A lot of the tensions that are happening throughout the entire world economy are adding to this continued doubt and many questions to go with it.
Reported Ferrous Prices (5/2/- 5/8):
- North Little Rock, AK: Scrap Iron, $0.04/lb.
- Murray, KY: Shreddable Steel, $175.00/ton
- Havre de Grace, MD: Light Iron, $120.00/ton
- Wyoming, MI: Light Iron, $210.00/ton
- Cranston, RI: Shreddable Steel, $160.00/ton
- North Platte, NE: Scrap Iron, $110.00/ton
- Suffolk, VA: Light Iron, $80.00/ton
- Albuquerque, NM: Shreddable Steel, $110.00/ton
- Montebello, CA: #1 HMS, $250.00/ton
Other Scrap Markets
The gold market has fallen as well and with China restricting a lot of it’s important, we will see the electronics market continues to get hit. More and more people that we talk to are looking more for electronics that they can refurbish and resell, and the scrap market should continue to weaken.
Let us know what you think and what else you would like us to research and find out about.
Scrap ya later!