Gas Prices Down…Copper Following
The gas and copper prices are down and many people have mixed feelings on that. Many people have been talking about how they love the gas prices being so low…but hate the copper prices and other metal prices following the downward turn. We have talked to many people about why we think that the prices have gone down for the copper and other metals markets so much but we wanted to share a little bit more with you today.
At my scrap yard we have customers calling us dozens of times a day asking us about current pricing as well as going online through the iScrap App to get current pricing. In the last few days we have been receiving many disgruntled customers who are upset that the prices have gone down so much.
Our response to many of them is that we believed that the market was overinflated to begin with…but also that many people still believe that the market is higher then it is supposed to be still. With oil prices going down over 50% since peaking during the summer of 2014, the only commodity that took a swift decline was the steel and ferrous markets. It is not shocking that the copper prices have taken such a big fall especially with some of the reports that have come out recently.
The World Bank predicted that China’s copper consumption would be falling this year, and with China consuming 45% of the worlds copper right now that news was alarming. China and India are two of the biggest catalysts when it comes to the copper market. They want to be able to establish their infrastructure, something that the USA already has much of in place.
With the markets being a little all over the map right now we suggest that you should assume more drops and take a profit while you can. Many people think that the market will climb back up again, and we can’t disagree…..but the question is when? While we may see smaller spike of a few cents a day going up, the way that the markets have acted the last few years warrant a little instability happening as well.
Where the market is headed next? No one knows for sure. With some people predicting that oil prices will dip into the mid $30 per barrel range it is hard to guess when the gas and copper prices are down, up, or staying the same anytime soon.
Our guess….just roll the dice and wait and see what happens.