Where to Begin?!?!
No one likes to be right about things that aren’t exciting to talk about, but that is what’s happening right now with the markets. We see a market correction across the spectrum for steel and copper as so many prices are being dropped. Many of these problems stem from the price of oil and because of many lockdowns that are happening over in China that are disrupting different flows.
We Warned You: The Last Three Weekly Reports
- 4/20: Are Scrap Prices Slipping?
- 4/13: SELL: Is A Pullback Coming To Scrap Prices?
- 4/6: Will High Oil Prices Cause Scrap Drop Off?
On top of that, you still have large areas of the commodities markets that are in limbo as different suppliers continue to have disruptions both in shipping and product supply chain issues. These are issues that will affect people at larger scales and trickle their way down to the consumers, but as scrappers, many of the metal prices will initially get her before consumers feel any additional relief. We will talk about that later on.
Copper – SELL
Brass – HOLD
Copper Wire – HOLD
Stainless Steel – SELL
With copper prices dropping about $0.35 in the last few days, we are frankly happy that the prices did not drop even lower. With the market price dropping due to various problems, we see the markets in correction territory. The markets have dropped because the Chinese have locked down multiple areas of their country due to Covid and many fuel consumptions are down.
On top of that, many people are watching some of these interest rates that are slated to increase next month and those interest rate increases are going to have dramatic problems when it comes to different commodities and different technology stocks. These are still very small commodity swings in pricing as a 7 to 8% correction is not even equal to the declines that we have seen in the stock market for many technology stocks and other large companies. Some of the companies have had earnings problems and moving forward are continuing to talk about supply chain issues that will cause further problems.
Non-Ferrous Price Chart of the Week
#1 Steel – HOLD
Shreddable Steel – SELL
Light Iron – SELL
Cast Iron – HOLD
Complete Car – HOLD
We have now seen the price of steel go down about $100 per ton across the board in the last month. These price declines should not be a surprise as we have been talking about these prices being inflated for the last few weeks. A rapid increase in pricing as we saw during February and early March, generally leads to large producers of scrap or larger processors unloading many thousands of tons of material that had been sitting on the ground otherwise. In addition to that, we have also seen the oil and gas prices being upset and going all over the place.
Not only have we started to see Russia cutting off different European countries from receiving natural gas and regular crude oil, but we have also seen the Chinese locking down many parts of their country which means that gas levels have not been regular in the last few weeks. On top of this many large corporations are putting earnings reports into the stock market for the first quarter, but many are predicting slowdowns in the second half of this year and anytime you start to hear about these different slowdowns you will start to get markets that react to future reports and then decrease immediately.
We have seen some large steel processors dropping prices every other day for the last two weeks hoping that in between one of those drops there would be some good news that comes out to negate the drops and offer a little optimism. That currently has not happened and that’s where we are in the markets today.
Ferrous Price Chart of the Week
Catalytic Converter Prices & Market Status
Catalytic Converters – SELL
We have seen different prices for the catalytic converters decreasing over the last few days. This should not come as a surprise as uncertainty from Russia as well as different economic slowdowns and large problems that are happening with semiconductors continue to catch the headlines. One of the nice things about dealing with www.RRCats.com is that we give you the ability to get prices and have them held for 10 business days to be able to give you relief and security when it comes to prices.
Other Metal Markets: New Age Batteries
In other markets, we have seen aluminum continuing to stay strong but the overall markets have seen a very stable output for different materials when it comes to processing. We’re happy with where the markets are and one of the strongest markets that we have seen has been the nickel and stainless steel market with prices continuing to have upticks over the last few weeks.
We have a couple of videos and podcasts that feature some interviews with family inside the Scrap business and with Scrappers. If you’re looking to be featured, interviewed, or even interview any of the people at iScrap, let us know so we can get it together.
Other Valuable Resources
- 4/20/22: Are Scrap Prices Slipping?
- One Thing Scrap Yards Won’t Tell You About Scrap Prices
- What Are Metal Tariffs & How Do They Affect Scrap?