Oil Prices Surge, What’s It Mean For Scrap? – 4/24/19

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Welcome!!!

We hope that many of you Enjoyed a nice Easter or Passover and had some quality time with your families. We have been aggressively tracking the market as best as possible and it seems that the economy is really doing well which is helping a lot of material to go into the market but the prices have been very reluctant to increase to the levels that we would like to see.

Quick Numbers

  • 9% – Copper has increased 9% this year. 
  • $80,000 – The amount of cost that a new “construction themed gaming chair that will go towards promoting the construction industry via video games.
  • 1.6% – The amount of growth in retail sales in March- the largest single month since September 2017.

Social Scrap from Our Facebook Group

We love hearing stories about what motivates people because half of life is being motivated internally or having others give us a little extra motivation as well. This week we saw a note from Robert Young that motivated us because of the positive message that he pushed out. 

JOIN FACEBOOK GROUP

Non-Ferrous Market News

Researching and figuring out what is going on with the copper, aluminum, and other non-ferrous markets are one of the toughest things that we do every week. We are constantly looking at news stories, analysts, and just talking to people who are in the industry as well. What everyone is saying this week is not too much. Many people are still waiting for some sign of positive news from the tariff negotiations and we have not seen anything happening that’s been too exciting.

Last week on Wednesday, we saw the market jump five or six cents with little to no news. With that increase, we expected to see some prices jumping but there was no reason for the market to have jumped the way that it did. Sure enough, within two or three days the market dropped down to the levels that it has been at for over a month and people were left wondering why it had jumped so quickly.

That leaves us in a wait and see mode right now to learn what is going to be going on.

Reported Non-Ferrous Scrap Prices (4/17 – 4/23):

Location

Material

Price

Woodinville, WA Lead $0.43 / lb
Rockaway, NJ #1 Bare Bright Copper Wire $2.62 / lb
Hopkinsville, KY Aluminum Cans $0.50 / lb
San Jose, CA Brass $1.50 / lb
Portland, TN Stainless Steel $0.30 / lb
Fargo, ND Aluminum Rims $0.50 / lb
Amery, WI Aluminum Siding $0.40 / lb
Glenwood Springs, CO #2 Copper Tubing $2.00 / lb
South Plainfield, NJ 500/750 Insulated Cable $0.50 / lb
Damascus, PA Car/Truck Batteries $8.00 /Each
Belmont, WI Bronze $1.20 / lb
Litchfield, MN #1 Copper Tubing $1.85 / lb
CHECK CURRENT PRICES

Ferrous Market News

With the oil prices increasing, we have begun to see a very strange market in 2019 as there has not been a real pattern established. We have seen the steel prices go up and go down $50 per ton in both directions this year and there does not seem to be a real clear cut reasoning for what is happening right now.

With oil prices going up seven weeks in a row, we have watched the market and have been trying to figure out how that will affect the steel and iron market. The only real news that we have heard is that the Mills and the furnaces are full of material and are not aggressively buying any more scrap right now. It seems that they are filling already taken out contracts and the overseas markets know this as well and they have lowered their price estimates and buying prices, as well.

Reported Ferrous Scrap Prices (4/17 – 4/23):

Location

Material

Price

Gadsden, AL Tin $0.07 /lb.
Middlesex, VT Cast Iron $100 /ton
Pasco, WA Light Iron $ 50 /ton
Milwaukee, WI Unprepared Cast Iron $120 /ton
Richmond, CA Cast Iron $ 80 /ton
Murfreesboro, TN Light Iron $100 /ton
Durham, NC Unprepared Cast Iron $ 90 /ton
Reedsville, WI Light Iron $140 /ton
Joplin, MO Cast Iron $120 /ton
Florence, AL #1 Steel $0.07 /lb.
St. Joseph, MO Sheet Iron $44.25 /ton
CHECK CURRENT PRICES

Other Markets

With such strength in the market right now people have pulled a lot of money out of gold because of their optimistic attitude towards the American uncommon me and future growth. Generally, when gold prices go up it’s because the economy has multiple concerns and right now it seems that everything is humming along very well.

A couple of markets like the nickel market which affects the Inconel prices as well as the Stainless market has been very weak and we have been in a wait-and-see mode to see if it recovers.

Thank You.

Let us know what else we can work on reporting to you- we are always looking to expand our growth modes. 

– Tom


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