Welcome to 2022!
If you have not seen the world changed in the last week- then you probably are seeing clearly! The world continues to move on and the scrap world is following suit. We have seen a lot of large news articles talking about steel manufacturers keeping more material inside of the US and that may spell better long-term prices for the scrap steel and iron markets.
In other news, copper continues to surprise us with another strong uptick the last week and we have moved it into the sell category if you are holding still. We have seen the non-ferrous markets have a strong uptick and overall we are seeing signs of a very stable and strong 2022.
Copper – SELL
Aluminum – SELL
Brass – SELL
Copper Wire – SELL
Stainless Steel – SELL
With copper prices going up over the last week we have seen another $0.12 added to the markets. On top of that, the further electrification of the auto market and the increased commodity prices have led to strong outlooks for 2022.
We think that the markets are going to continue to stay strong and other than the obvious 15 to 20 times a year of major price pullbacks overall we see a very strong market for all of 2022.
We also see the prices of aluminum continuing to increase and strengthen as the market demand has continued to go up as well.
Non-Ferrous Price Chart of the Week
#1 Steel – HOLD
Shreddable Steel – SELL
Light Iron – SELL
Cast Iron – HOLD
Complete Car – HOLD
With oil strengthening, we should start to see steel prices increasing as well. The markets have been much less kind to the iron prices over the last month and a half with a lot of that due to large pushback and backups at local steel mills.
On top of that, you have large disruptions in major steel processing countries like Turkey and India not only due to the current COVID problems but also due to political and economic problems.
Moving forward we do not expect to see much of an increase in January or February but as the oil prices continue to creep up we do expect to start to see those markets increasing going into the end of February and March.
Ferrous Price Chart of the Week
Other Metal Markets
Don’t be surprised to see an increase in the stainless steel prices over the first 2 to 3 months of this year of almost $0.05-$0.10 per pound. The market has taken a very large interest in restarting the aero industry as long as we can get more people traveling again. That will cause aviation and other high-temperature industries to see a further uptick of nickel-based metals as well as precious metals.
Catalytic Converter Prices & Market Status
Catalytic Converters – HOLD or SELL
We have seen a nice rebound across all three major precious metal pricing markets over the last 2 to 3 weeks. We have started to see the chip shortage shoring itself up and that has started to cause the auto manufacturers to go into high production rates. That has caused the catalytic converter prices to increase again as the material that was on hold is now needed again and will cause a higher price per cat average for the rest of the month and going into 2022.
If you’re looking for any guidance going into 2022 this much we can tell you. The scrap industry is going to quickly be noticed by even more people than it already is, which is gonna cause more competition.
If you’re a part-time scrapper don’t be surprised to see more part-time scrappers coming out of the mill as this generally happens when people need more money and when scrap prices are higher. Make sure you read a bunch of our articles to learn about how to sprout properly and safely and let us know what else we can do to help you learn about the industry.
Other Valuable Resources
- 2022 Scrap Price Outlook Series
- 4 Things To Avoid At Your Scrap Yard
- What Is Scrap Aluminum Extrusion?