Well, Helllooooo iScrappers!
We hope that you are all enjoying this two week before Thanksgiving notice and are staying busy out there. With the elections done and the votes have been cast, we are now in a wait and see mode as to what is going to happen with the change in political seats when January rolls around and different parties do different things.
Chimichurri & Trade Meetings?
We are hoping that the dinner date that the US and China have set in Argentina serves up not only some great Chimichurri (Top Argentinian Condiment) but also some positive trade signs. We have seen a lot of news coming out lately, but none has been more important than the potential China and US meeting. Here’s why:
- $500 Billion. As in the number of imports (give or take a few billion) that the US takes in from the Chinese. With tariffs on many of these billion still at stake, there is a lot to look for.
- Copper. Yes, everyone’s favorite metal, with the Chinese being the largest importer of scrap copper over the last 25+ years we have seen prices and demand curb with this tariff/trade battle.
- Argentina – With a dinner date between President Trump and Chinese President Xi being the most talked about dinner date anyone in the business or political world can remember, we are on alert. This is supposed to take place on the end of November or very beginning of December and could lead to a massive explosion in copper prices upward- or a continued push on prices downwards. We are watching this as close as could be. (Our guess is there will not be much small talk or compliments).
- December 1st– Looking forward to the first of the month, mark this date for that China and US meeting.
Non-Ferrous Market News
Copper took some nice gains late last week, but with the elections taking place yesterday we started to see a lot of sell-offs, probably because of the uncertainty- but here we are with a better idea of what is going to be going on. With the Senate staying Republican and the House going Democrat, we are going to see some political stalemating going forward and that will affect metals prices.
We keep referring to the meeting in a few weeks, but this will be a major impact on the 2019 and beyond copper and other metals markets. We think that the stainless markets will continue to be hurting and going forward we will have to see how copper shakes out.
Reported Non-Ferrous Scrap Prices (10/31 – 11/6):
|Grand Junction, CO||Brass Shells||$0.96 per lb.|
|Rockaway, NJ||#1 Bare Bright Copper Wire||$2.52 per lb.|
|Monroe, LA||Stainless Steel||$0.25 per lb.|
|Binghampton, NY||Brass||$1.34 per lb.|
|Mount Carmel, PA||304 Stainless Steel||$0.20 per lb.|
|Tucson, AZ||#1 Copper Tubing||$2.05 per lb.|
|Rogers, AR||Old Sheet Aluminum||$0.35 per lb.|
|St. Paul, MN||Aluminum Copper Radiators||$0.91 per lb.|
|Livingston, TN||Aluminum Siding||$0.55 per lb.|
|Anchorage, AK||Insulated Copper Wire||$0.58 per lb.|
|Green Bay, WI||Brass||$1.62 per lb.|
|Oklahoma, OK||Computer Wire||$0.35 per lb.|
|Marion, NC||#3 Aluminum||$0.55 per lb.|
Let’s Get Social
We want to go over some of our favorite posts of the week, not only for the number of likes but for the conversation that goes on from the subject.
This week’s social post was about moving some material that turned into a $200 score! You never know how something little could become something big!
Ferrous Market News
With steel prices increasing AGAIN, we are happy to see this trend continuing to take shape. We have seen prices climbing about $7 per ton across all reported prices over the last week. With the election behind us and more restrictions on pollution the last week or so coming into light, we fully expect this bull market to continue the rest of 2018.
With prices jumping all over the country we are happy to see that the price increases that scrap yards are receiving are directly being pushed to the scales and to scrappers.
Reported Ferrous Scrap Prices (10/31 – 11/6):
|Hanover, MD||Shreddable Steel||$80/ton|
|Hugo, MN||Light Iron||$120/ton|
|Midway, WV||Shreddable Steel||$120/ton|
|Houston, TX||Light Iron||$60/ton|
|Pennsauken, NJ||Shreddable Steel||$130/ton|
|Binghamton, NY||#1 HMS||$240/ton|
|Livingston, TN||Shreddable Steel||$180/ton|
|Hempstead, NY||Light Iron||$0.04/lb.|
|Hinesburg, VT||Shreddable Steel||$80/ton|
Other Market News/Thoughts
Overall thoughts are that the markets are going to be jumpy the rest of 2018. With the elections behind us, we are now going to be looking towards any type of positive trade talks (especially with China). These talks will become the door to unlocking the puzzle that we have seen in 2018.
Asian stocks have been at some of their lowest levels in years, and a large reason has been because of the tariffs and economic sanctions that are in place. Let’s hope that we hear of a very positive meeting in the next 30 or so days.