We hope that everyone is enjoying the nice weather and we hope that all that have been or are being affected by the Tornados or the flooding that you are making through as best as possible.
With the metal prices being so volatile right now, we have been watching the markets and trying to figure out how to take some of these things in and here is what we have found. Many people (including the Chinese) want the markets and hope for them to increase but they know that the key to long term sustainability is to get a trade deal done. Getting rid of the tariffs will be like pulling the monkey off of the back of commodities and could open a lot more up for the economy.
If we are not fortunate enough to get a deal done (but we are hopeful after hearing reports over the weekend that the Chinese are looking to get back on track) this could possibly lead to a recession later this year or early next year. One thing that we have seen over the last week is a large jump in gold prices (over $40 per ounce up) and that is partly because of the trade disagreements as well as the potential tariffs on Mexico.
- 5% Tariff– Amount that the US is going to charge Mexico starting on June 10th with 5% additional increases coming the first of each month for several months.
- $5-12– Decreases coming again for steel as many are scared about the Mexican tariffs as well as the uncertainty with the Chinese.
Social Scrap from Our Facebook
This pas weekend we started something new on our Facebook, SCRAP LOAD SATURDAYS. Every Saturday we are going to share a recent photo from a scrap load shared from our Facebook Scrapper Group and see what loads you have from the week too.
Be sure to stay safe and share only SAFE scrap loads. We can’t wait to see what you’re hauling!
With positive news coming from the world of tariff talks, we are hoping to see a reigniting of the talks between the Chinese and the US. We have seen the markets flatten out over the last week and it has been a welcome site overall considering the rocky month of May that we saw. Gold has been the hottest metal over the last week with prices rising due to tariff talks with Mexico.
While many people have said that the tariffs really have hurt the scrap prices (don’t be mistaken – they have) but long term we could be in better shape because of them.
Suggested Reading: What Are Metal Tariffs & How Do They Affect Scrap?
The aluminum market and most others are just on a flatline right now and there has been little to no movement at all. It has been very difficult for anyone to really know what is going on as the markets have been all over the place with news but not with much movement.
Reported Non-Ferrous Scrap Prices (5/29 – 6/4):
|Frankfort, KY||Brass||$1.26 / lb|
|Rockaway, NJ||#1 Bare Bright Copper Wire||$2.35 / lb|
|Schofield, WI||Aluminum Cans||$0.35 / lb|
|Beaver Woods, WV||#2/3 Mix Copper||$2.00 / lb|
|Lewistown, PA||Insulated Copper Wire||$0.80 / lb|
|Alvin, TX||Yellow Brass||$1.45 / lb|
|Lafayette, IN||400 Series Stainless Steel||$0.50 / lb|
|Des Moines, IA||#1 Copper Tubing||$2.00 / lb|
|Elizabeth, NC||#2 Copper Tubing||$1.70 / lb|
|Montreal, Quebec*||AL Extrusion||$0.62 / lb|
|Cincinnati, OH||Aluminum Siding||$0.30 / lb|
|Brooklyn, NY||Stainless Steel||$0.30 / lb|
Steel and iron seem to have a little sign of life with the market rising $5-10 per ton over the last week. Will that last? Who knows at this point as everyone is waiting for the meeting at the G20 Conference in two weeks. This will be one of the most highly talked about and anticipated meetings between world leaders in all of 2019 and could lead to major shifts in the metals and will leave a lot to be seen.
With the Chinese producing 50% of the world’s steel it is very difficult to know how the tariffs will affect this market. But lifting some of the tariffs will affect the non-ferrous markets for insulated copper wire and some copper bearing items that contain steel as well.
Reported Ferrous Scrap Prices (5/29 – 6/4):
|Thief River Falls, MN||#1 Prepared||$90 /ton|
|Chesapeake, VA||Light Iron||$80 /ton|
|Alvin, TX||Scrap Iron||$100 /ton|
|Newport, AR||#1 Steel||$120 /ton|
|New Orleans, LA||Cast Iron||$80 /ton|
|Norfolk, NE||#1 Prepared||$135 /ton|
|Albertville, AL||#1 Steel||$110 /ton|
|Coshocton, OH||#1 HMS||$270 /ton|
|Williamsport, PA||Cast Iron||$80 /ton|
|Lithonia, GA||Shreddable Steel||$30 /ton|
|Anchorage, AK||Cast Iron||$30 /ton|
Gold has been shining in the last week, but that has not had much of an effect on the electronic side of things with the markets being depressed due to the continued tariffs. One important thing to remember is that with the tariffs in place with China, the rest of the world knows that they do not have to overpay and that has driven scrap prices down as well.
- Last Week’s Report: Unfortunate Drop For Scrap, Again
- Factors That Determine Scrap Prices
- 6 Ways To Cut Expenses When Scrap Prices Are Down