Healthy Wishes to All,
We hope that everyone has been doing their best to follow all the proper precautions and staying as safe as possible. These are crazy moments and we hope that as few people who are impacted with this as possible. We have been following all of the steps that the government both State-Run and the National Government has been taking to help slow the spread and we hope that many of you are listening to the warnings.
We know that everyone has heard the news about the virus so let’s get to things that you’re tuning in for and that’s what is going on with the scrap metal world. Fortunately, copper has stabilized over the last two weeks been up or down the same $0.05-$0.10 which is a good sign considering the stock market is jumping more erratically than that. The issue that we have seen is that more scrap yards are closing to trade or peddlers to prevent exposure to employees. We have heard that the commercial side of things has remained open for many yards while continuing to serve manufacturing and industrial companies.
- 12 Years – Gold had its best week in 12 years
- $1.99 per gallon – is the National Average on gas
Social Scrap from Our Facebook Group
Normally we like to highlight someone that had posted something positive or cool in the social media world but this week we want to talk about other positive things. The amount of responses that we have seen for the support of local medical experts as well as donations from scrapyards, demolition companies, and other manufacturing industries to help the medical workers dealing with this outbreak has been heartwarming, to say the least. If you have any ability to help anyone in need with extra medical products we think it’s one of the best and most positive things that you can do right now.
While everyone focuses on copper, we want to take a broader look at the overall non-ferrous market. A lot of the prices have been depressed from stainless steel to aluminum to copper as no one knows what the results or the end game are on the virus containment. Many of the prices have become artificially depressed not due to the trading numbers but because of the lack of movement for metals and lack of production or new manufacturing. We have talked to many people in the manufacturing world and they have seen many things dropping down which has impacted the entire metals world in a big way.
Copper has been treated at a relatively low-level volume worldwide because moving it is a problem, whether it’s domestically or internationally. On top of that, many people are not having any work done and Scrap is not being produced as quickly as it regularly was, leaving scrap yards in a tough position to move metal.
Reported Non-Ferrous Scrap Prices (3/25 – 3/31):
|Kansas City, MO||Car/Truck Batteries||$0.13 / lb|
|Rockaway, NJ||#1 Bare Bright Copper Wire||$1.75 / lb|
|Abilene, TX||Aluminum Engine Block||$0.18 / lb|
|Cincinnati, OH||#2 Copper Tubing||$1.00 / lb|
|Shelbyville, KY||Brass Scrap||$1.50 / lb|
|Longview, TX||Brass||$1.05 / lb|
|Chicago, IL||#1 Copper Tubing||$2.00 / lb|
|Topeka, KS||Electric Motors (Copper)||$0.05 / lb|
|Janesville, WI||Aluminum Cans||$0.30 / lb|
|Bowling Green, KY||ACR||$0.65 / lb|
|Solvay, NY||#1 Copper Tubing||$1.97 / lb|
|Manassas, VA||Insulated Copper Wire||$0.20 / lb|
Not only one of the tougher issues to talk about, but one of the hardest ones to figure out. After seeing the price of iron and other ferrous products drop $50-$80 per ton in the last two weeks, we have seen no movement this week. Part of the reason that we have not seen any movement is because no one has been buying or really moving much material at all. Overall, the markets have been stalemate and large processors are not taking material in, so there haven’t been any market adjustments because there hasn’t been any material physically getting moved. We’ve heard about barges being parked out in the oceans not being able to dock and transfer material and we’ve heard of scrap yards shutting down.
All of the sweeping changes have been not only due to the COVID-19 outbreak but because the oil prices are so low. We know that there have been discussions between the Saudi Arabian Government, the Russian Government, and the United States Government to try to get this under control but with oil prices dropping to near historic lows if you factor inflation in it has been a very different time.
Reported Ferrous Scrap Prices (3/25 – 3/31):
|Conway, AR||Tin||$0.03 /lb|
|Kansas City, KS||#1 Steel||$40 /ton|
|Woodbine, NJ||Light Iron||$0.02 /lb|
|Newton, WI||Rotors||$130 /ton|
|Bowling Green, KY||Incomplete Car||$50 /ton|
|North Kingstown, RI||#1 Steel||$72 /ton|
|Columbus, OH||Automobiles||$120 /ton|
|Bunnell, FL||Tin||$2.50 /CW|
|Manassas, VA||Light Iron||$40 /ton|
|Colchester, VT||#1 Steel||$40 /ton|
We have seen the catalytic converter market coming back to life slightly with platinum, palladium and rhodium prices increasing overall. After a very rocky couple of weeks, it’s nice to see a more stable market and hopefully, we will see this going forward. If you have any catalytic converters that you’re looking to get priced you can always go to www.RRCats.com to learn about the markets.
This week’s message is simple, stay safe, stay healthy and stay home as much as possible. As a nation, we will get through this as long as we are all working together as one.
- Feeling Sideways, COVID-19 & Scrap – 3/25/20
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- The Economy: What’s Scrap Got To Do With It