Demand Is Pushing Non-Ferrous Prices Higher – 1/20/22

HOLD OR SELL NON-FERROUS
HOLD OR SELL FERROUS

We Are LOVING These Markets.

It may not be Valentine’s Day yet – but we are sure loving these markets. They have not surprised us and have shown a little resiliency over the last few days, even after a quick jump the previous week. The immediate market jump that we saw did not last long, but it did show us that we may have a market floor beginning to get established.

With reported prices and yards’ prices across the country in very strong positions, we have been able to see the markets stabilizing and then send that information to you. We are watching the overall markets, and while there are more minor blips (that is called trading), we are happy with the floor and the levels we have reached. Steel and iron look to have flattened from the declines that we were seeing late last month and earlier this month. 

Non-Ferrous Prices & Market Status

  • Copper – SELL

  • Aluminum – SELL

  • Brass – SELL

  • Copper Wire – SELL

  • Stainless Steel – SELL

With the markets returning to positive territory in trading last week on the commodity side of things, we expect more of the same soon. These markets are going to follow world activity. It looks like even though negative financial news comes out, we are also seeing the demand for consumer products that will continue to push metal prices.
 
Over the last few weeks, we have seen, read, and discussed how the EV market and the renewable energy boom would create demands for different materials like copper, brass, steel, lithium, and more that could be this generation’s oil or gold rush. We could 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

 

Ferrous Prices & Market Status

  • #1 Steel – HOLD

  • Shreddable Steel – SELL

  • Light Iron – SELL

  • Cast Iron – HOLD 

  • Complete Car – HOLD 

With oil and gas prices rising more and more each month we expect these price increases to start to push metal prices up in the second quarter. With fuel and transportation costs increasing that will affect the scrap pricing in the short term. After the winter is over and as more supply chains get back on track, we expect to see these markets increasing as we constantly see improvements.

The steel markets, while down, are still in a very strong position when you compare to this time last year. We are waiting for more worldwide production and supply chain issues to increase in the interim to get a better idea. 

Ferrous Price Chart of the Week

Other Metal Markets

The market for batteries is becoming a space that is not that welcoming. With EV’s taking over, we will see an increased recycling flow for batteries from electric vehicles- but not many scrap yards know how to handle these batteries yet. This will lead to many supply chain and recycling issues as the downstream recyclers (meaning the ones that your batteries get sent to after going to the scrap yard) are still getting their large-scale recycling systems established

Suggested Reading: The Effects Electric Vehicles Will Have on Copper Scrap

This is one of the biggest things that we are watching in 2022 as it will affect not only recycling markets but also begin to show the public/and scrappers how to better handle these moving forward. 

Catalytic Converter Prices & Market Status

  • Catalytic Converters –SELL

Markets are up what can we say other than SELL. you are resorting to betting to try to time the markets right (who could ever do that?)  We see these markets in a really strong place overall and they could solidify over the next few weeks as we see more auto manufacturers really picking up their paces on new units. This will lead to increased demand on the PGM side of things and should continue to push the prices up. 

Thank You.

With the markets in an excellent (not good or bad) spot, we hope you see a lot of the same. With the beginning of 2022 in a strong positive for metal prices, we are expecting another solid year similar to 2021 as it comes to commodity pricing. 

– Tom

 


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