Time To SELL Copper? – 11/24/21

HOLD OR SELL NON-FERROUS
HOLD OR SELL FERROUS

Gobble Gobble Gobble!!!

With the holidays here (crazy how fast this year went!), we want to wish you a Happy Thanksgiving. Whether or not you are deep-frying the bird or eating Tofurkey (no idea what it tastes like!), we hope you have a day to give thanks for all that you have.

The markets dislike the holidays from what we can see; the Grinch so far is the PGM catalytic converter market which has seen PT and PD drop 10% or more each the last few days. This could be traders getting out or a sign of things to come for the balance of the disrupted year.

Non-Ferrous Prices & Market Status

  • Copper –SELL

  • Aluminum – HOLD

  • Brass – HOLD

  • Copper Wire – SELL

  • Stainless Steel – SELL

With copper prices regaining some steam (and some strength), we see the markets have a nice uptick before the holidays. We suggest selling some copper if you’ve been holding the last few weeks. Many scrap yards shy away from being overly aggressive before the holidays due to the rapid fluctuations in the market. Add those normal fluctuations to all that is going on, and you have a remedy for a demanding market going into the holiday season.

Non-Ferrous Price Chart of the Week

 

 

Ferrous Prices & Market Status

  • #1 Steel – SELL

  • Shreddable Steel – SELL

  • Light Iron – SELL

  • Cast Iron – SELL

  • Complete Car – SELL

With the oil prices beginning to quiet, we are seeing steel prices continuing the uptick. A lot of this is based on demand that still has not been quenched. We’re looking at the market for the rest of the year, and they look to have a positive trajectory, but we do see signs of weakness coming in December as usual. We could see the markets dropping down $10-$20 per ton, but after the increase, we’ve seen over the last month and a half, there should be nothing to complain about.

Ferrous Price Chart of the Week

Other Metal Markets

As electric vehicles become more popular, we see a significant move away from lead-acid batteries. Many of these have been used in the past for automobiles in cars and backup panels for solar projects and other types. With the newer Batteries coming on the market, such as nickel-metal hydride or lithium-ion, we are starting to see the battery market eroding, and it does not look like we will see an uptick anytime soon. The lead batteries do not hold a charge is nearly as well as some others do, and with the acid involved, it becomes more of a risk, and that’s part of the reason the prices are falling.

Catalytic Converter Prices & Market Status

  • Catalytic Converters – HOLD

Isn’t it funny what a difference a couple of days make? If you asked us on Friday what we thought about the market, we would’ve told you to sell, but we have now seen a decrease of 10 to 12% for some of the precious metals going into the catalytic converter’s. This has caused the national average to decrease by about $10 per cat until we see stabilization over the next week and a half. If you’re thinking about holding onto material, now might be a good time to hold off for a couple of weeks.

Thank You.

– Tom

 


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