First and foremost we send our prayers to the conflict in Ukraine and we hope that it gets resolved as peacefully as possible.
With this conflict going on we have a lot of problems in the metals markets and we are going to be paying close attention to a few key metals like Palladium (catalytic converters) and copper as well as many other base metals that we will go into.
Non-Ferrous Prices & Market Status
Copper – SELL
Aluminum – SELL
Brass – SELL
Copper Wire – SELL
Stainless Steel – SELL
With this conflict affecting the metals market, we are going to watch a few key metals that may shoot up in price in the coming days and weeks. Copper is going up a bit but may not be as affected as other metals like Nickel and Iron prices may be rising. One of the bigger commodities that we are watching out for is the oil markets which have seen rising to levels not seen in over 10 years.
These oil prices will force copper and aluminum prices up even more as the tensions continue to rise. If you are looking for an indicator of when there may be a dip down in metals prices you should look for stoppages in the conflict overseas. Without a resolution overseas we are going to see prices be very erratic for a while.
Aluminum markets are climbing but not due to the Ukraine conflict. Russia only produces 2% of the world’s aluminum so we do not expect to see many disruptions or fast price increases.
Non-Ferrous Price Chart of the Week
Ferrous Prices & Market Status
#1 Steel – SELL
Shreddable Steel – SELL
Light Iron – SELL
Cast Iron – SELL
Complete Car – SELL
With the markets up about $20-30 per ton, we are happy to see a nice price increase over the last few weeks across all steel grades. From busheling to light iron we have seen a strong increase and that seems to be holding steady moving into the rest of the month. We expect the gas and oil prices to continue to increase as more Russian supplies come offline for the world markets.
This conflict is sending waves in a few particular industries from energy to metals and those will continue to be the spotlights on the economic side of the problems between Ukraine and Russia.
Palladium has been the metal of interest with prices buoying up and down in big shifts. The chart below shows that Palladium (Pd) prices have now hit 2022 highs and the 30-day moving average is up about 13%. With Russia producing about 40% of the world’s Palladium we are going to see major problems in the auto industry for catalytic converters as well as major problems in the microprocessor markets.
These two markets are heavily reliant on Pd and with the possibility of much of the world Palladium being upset over the next few weeks, months, or possible years we expect to see major markets shifts for the foreseeable future. We may witness Palladium prices staying at higher levels for the foreseeable future and that will have impacts on things like car prices and electronics moving forward.
Other Metal Markets: New Age Batteries
All metals are being affected right now and this may be here to stay for a while. We have seen investors flocking towards gold with prices holding over $1900 per ounce for the first time since May 2021. This will affect more commodities in the future as investors seem to be flocking towards metal and also another reason that the markets are moving upwards.
Until Next Week…
Overall the markets have been moving steadily (all things considered) and metals will be heavily affected as long as this conflict is going on.
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