6/27/18 Scrap Price Report: Small Cause for Concern

Hey Scrappers!

What a tumultuous week we have seen in the markets! Not sure where to begin, but we have seen a lot of different things happening over the last week and there might be a small cause for concern.

With the stock market in the world markets in a large fluctuating state right now, we have seen gas prices rise, gold prices fall, the stock market have wild and crazy swings not only in the United States but also in different parts of the world.

We have read multiple articles about how the Chinese continue to put push back on the entire world and we have seen the United States continue to push forward with tariffs and other restrictions on different countries.

Suggested Reading: What Are Metal Tariffs & How Will They Affect Scrap?

Non-Ferrous Markets

With the copper prices relatively flat over the last week, we have tried to put our attention towards other markets that could have an impact on copper. We have seen the price of oil rise 3 to 5% over the last week, mostly because of different concerns about how the OPEC countries will be changing some of their pumping guidelines for the next few months or possibly years.

Suggested Reading: How Gas Prices & Scrap Prices Are (or Are Not) Related

We have seen gold prices fall to $1,250 per ounce, and that does not include the multiple East scrap buyers who are starting to have pushback on the export market that they have relied on for years. While the aluminum market has remained strong over the last few months, many speculate that if he gets hit in the next month or two it would be a swift in a rapid drop. 

Something that you may of heard talked about for the last couple of weeks would include tariffs on European car imports. Those tariffs could equal up to $6000 per car, and the US government is trying to impose these tariffs to push more people to continue to buy American made vehicles. With this happening and with the European car market such a popular one in the United States, we have started to see the European Union in different countries inside of it having tariffs pushed onto the United States for multiple products that it makes and sells.

Reported Non-Ferrous Prices (6/20 – 6/26):

Location

Material

Price

Cassadaga, NY Christmas Lights $0.10/lb.
Rockaway, NJ #1 Bare Bright Copper Wire $2.66/lb
Plant City, FL AL Extrusion $0.64/lb.
Connelly Springs, NC Brass $1.46/lb
Gonzales, LA Aluminum 6061 $0.60/lb.
Bosque Farms, NM Insulated Copper Wire $0.73/lb.
Wheeling, WV Cast Aluminum $0.45/lb
Edmonton, Alberta* Lead Wheel Weights $0.25/lb.
St. Peters, MO 310 Stainless Steel $2.75/lb
Marshalltown, IA Electric Motors (Copper) $0.60/lb.
Baltimore, MD #1 Bare Bright Copper Wire $2.50/lb.
Yakima, WA Aluminum Rims $0.50/lb.
Milton, IA #2/3 Mixed Copper $2.30/lb.
Weyburn, Saskatchewan* #1 Copper Tubing $2.40/lb.
La Puente, CA Brass $1.10/lb.

Ferrous Markets

With a little glimmer of hope in this weeks report, we have seen the average price of steel increase about $5-7 per ton week over week. That includes light and heavy grades of steel overall, which is a very positive sign moving forward into the summer months when more demolition projects tend to happen throughout the US and more steel continues to be recycled. 

We’ve heard that several countries in the Middle East, such as Turkey are continuing to send large barges over for loads of scrap steel on the East Coast. After talking to people on the West Coast we hear that other countries such as Malaysia, continue to have a demand for steel. 

Reported Non-Ferrous Prices (6/20 – 6/26):

Location

Material

Price

Kernersville, NC Shreddable Steel $0.063/lb.
Lachine, Quebec* Light Iron $280.00/ton
Edmonton, Alberta* Cast Iron $180.00/ton
Pierrevill, Quebec* Shreddable Steel $220.00/ton
Lake Elsinore, CA Light Iron $100.00/ton
Portage LaPrairie, Manitoba* Shreddable Steel $170.00/ton
Chatsworth, CA Shreddable Steel $60.00/ton
Yakima, WA Unprepared HMS $55.00/ton
Atwater, CA Shreddable Steel $60.00/ton
Manchester, CT Light Iron $160.00/ton

Other Markets

Overall the news has been extremely mixed with the markets reacting and interacting in ways not seen in a long time. We are going to be in a wait and see mode for a while and will have to really pay attention going forward.

Scrap ya later!

-Tom


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