Markets Are Weird… 😵💫
With the market seeming to screw around with investors back-and-forth right now, it seems to be no different than for scrappers. We have heard that the markets should remain strong as commodities continue to be part of a worldwide supply chain, but the market certainly has been bouncing back and forth over the last few weeks.
These markets seem to be a little lost. We have heard of investors really just trying to capture the stock market right now through any means necessary, including utilizing commodities and all other global commodities with different trading platforms. It’s unfortunate because when you boil it down to the scrap world on a micro-level, sometimes we get caught up in the crosshairs, and hopefully, we can help figure those things out as we go.
With oil prices rising and some global concerns still out there, we have not seen a blossoming market over the last few weeks but more of a stabilizing market. We’ve seen a couple of materials dropping in value but nothing too crazy; however, it will affect the overall picture.
- 39.95% increase –Natural gas futures rose 39.95% in Q2 numbers.
- 23.30% loss – After reaching a new all-time high at $28,800/oz in Q2, rhodium dipped 23.20% following the end of the quarter.
Weekly Facebook Group Highlight
Looking to protect your truck? Check out this great life hack and add an anvil to your tailgate. This funny photo we recently saw on social, was particularly amusing. No need to worry about anyone getting too close to your tailgate!
Below, another scrap meme for your enjoyment 😁
Last But Certainly Not Least…
Don’t forget we are running a giveaway through Patreon during July and August! Sign up to be an Aluminum or Copper Patron and be entered to win DeWalt tools (in addition to all the great Patreon benefits 😉)
Question: “Is it worth it to cut down steel into 3 ft lengths for a prepared material grade? All I have is an angle grinder.”
Tom: “If you only have an angle grinder, it does not make sense to cut the steel into shorter lengths. The time that you’re going to spend is going to be negated by the price that you’re going to get, and if you really want to do this you, should buy a proper tool or learn how to use a torch to save yourself a lot of time.”
Report, Report, Report ✍️
So many people have been reporting their scrap prices recently, and the new iScrap App will be coming out this summer. It should hopefully 🤞 help make reporting even easier. One trend that we have seen has been stabilizing markets over the last month and a half. We did see the price of copper having a small pullback, but it’s only been down about $0.02/lb over the last week. With markets at high levels, any week-to-week change of fewer than $0.08 is really just normal trading patterns.
We keep talking about these different electric vehicles and how people plan on using renewable energy instead of gasoline products. We’ve seen in the real world scenarios that the amount of copper that’s going to be needed. At the same time, it could help the overall industry, not be the economic factor that changes the price and buoys it into the $5-$6 range, as we could’ve seen earlier this year. It looks like copper prices are going to stabilize, especially now that we’ve seen the Chinese releasing a second large batch of copper into the market.
This primarily shows that the Chinese are worried about the price of copper and that it will become out of control and different consumer prices rising simultaneously.
Reported Non-Ferrous Scrap Prices (7/7 – 7/13):
|Vidalia, LA||#2 Copper Tubing||$3.00 / lb|
|Rockaway, NJ||#1 Bare Bright Copper Wire||$3.75 / lb|
|Middleboro, MA||#1 Copper Tubing||$3.25 / lb|
|Durham, NC||Stainless Steel||$0.41 / lb|
|San Marcos, TX||Aluminum Copper Coil||$1.60 / lb|
|Superior, WI||Aluminum Cans||$0.45 / lb|
|Sharon Hill, PA||Cast Aluminum||$0.37 / lb|
|Bunnell, FL||Aluminum Siding||$0.35 / lb|
|Lacey, WA||Aluminum 6063||$1.09 / lb|
|Inver Grove Heights, MN||Zinc Die Cast||$0.33 / lb|
|Denver, CO||Romex® ® Wire||$2.13 / lb|
|Lockport, NY||Brass Shells||$1.60 / lb|
Steel Shoots Up = Clean Outs Begin 📈
We have seen the pricing of steel drop about $5-$10/ton going into July. This decrease comes about a week later than it normally would, and that’s most likely due to the 4th of July holiday and slower economic data being released throughout the markets. We have seen the worldwide consumption of metals continuing to grow. Still, with so many flareups of Covid worldwide, sometimes here in the United States, we quickly forget that it was only a short six months ago that we were going through the same thing, and that’s what other people are going through right now.
Long-term and sustainably high steel prices are going to be more reliant on people than traders. And with the oil markets continuing to climb and the possibility of gas prices rising another 15%-20% this year, that will be one of the main factors that will affect the entire markets worldwide. When looking at prices, oil is a commodity like steel and iron, or can you look at the differences between the two of them, you’ll start to figure out how the market will shape up. Many people will want to work with renewable energy and make it easier to recycle materials like scrap.
Another thing that we have started to see and that you should pay attention to is the quality of the material. We saw this about 15 years ago when the steel prices shot up. Everyone did clean-outs, pulled everything out of their backyard, basements, and fields just because steel prices shut up so high. With these markets continuing to be so high, we expect to see prices rising and stabilize for the rest of the year. Hopefully, this gives you a little more scrap inside going into the fall and winter.
Reported Ferrous Scrap Prices (7/7 – 7/13):
|House Springs, MO||Shreddable Steel||$165 / ton|
|Tempe, AZ||Scrap Iron||$185 / ton|
|Brookhaven, MS||Tin||$0.07 / lb|
|Hancock, MD||Complete Car||$257 / ton|
|Albuquerque, NM||Shreddable Steel||$100 / ton|
|Harrisburg, PA||Tin||$150 / ton|
|Kingstree, SC||Shreddable Steel||$0.09 / lb|
|Manassas, VA||Light Iron||$0.07 / lb|
|San Antonio, TX||#1 Steel||$0.12 / lb|
|Tacoma, WA||Shreddable Steel||$160 / ton|
|Cicero, IN||Scrap Iron||$150 / ton|
Other Metal Markets
White Hot Aluminum 🔥
We’re not quite sure that the phrase white-hot aluminum is one that you often use, but it is one that you should be enjoying today. So many people were focused on the runner-up of copper prices this year that many people did not focus on how high the aluminum markets have climbed. We have seen some reported prices throughout the country about aluminum prices for basic scrap climbing in the $0.80-$0.90 range. Many factors are helping usher these price increases, and one of them will better fuel mileage in the auto sector.
Companies such as General Motors and Ford are using more and more aluminum in the bodies of their cars due to its lightweight nature and more fuel-friendly options. These are just some of the markets that aluminum is blossoming in, and then you could talk about the electronics industry, which is taking aluminum under its wing in a very heavy way. This sure will be good for future production and material consumption.
Catalytic Converter Market News
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What Beats High Cat Prices? 🐱
Consistent, reliable quotes and prices are not always easy to find, and that has been one of the things that the team at RRCats.com has been able to do over the last few years. People consistently ask to learn about the catalytic converter markets. Many people who buy cats give you prices, while a select few will help you learn and give you consistency.
We have seen the markets jumping all over the place, with rhodium topping out as high as $29,000 and going down as low as $16,000 over the last seven weeks. There have also been price fluctuations in the palladium and platinum markets. Many catalytic converter sellers had dropped out of the market, as they have been here when they were aggressively buying at high prices.
Everyone seems to become a scrap metal dealer when the prices go up, which is no different for the catalytic converter industry. But what you have to look for is consistency and reliability, and when you go to sell your cats, those are two of the most important things.
Think twice before you try to get every single dollar for your material each time you sell because, in the long term, that might not prove to be the most sustainable and reliable method. But with the catalytic converter industry-changing, you can learn more through different avenues like this one.
Scrap Catalytic Converter Prices This Week (7/7 – 7/13):
Cat Type/Serial Number
|Foreign – Pre||$83 / @|
|Foreign – Medium||$350 / @|
|Foreign – Large||$378/ @|
|Domestic||$213 / @|
|Chrysler||$303 / @|
|Bead Regular||$38 / @|
|Bead Jumbo||$146 / @|
Let us know what you want to hear about to change our weekly reports and videos to reflect your curiosities. We are constantly changing, and we look for your ideas and advice to help us with that to help you make more money with your scrap.
- Last Week’s Report: Calm Markets: Smooth Sailing From Here? – 7/7/21
- Metal of the Month: Carbide
- 7 Common Types of Aluminum Scrap
- Current Palladium Scrap Prices – Catalytic Converters