We hope everyone enjoyed a nice Memorial Day and was able to have a barbecue and maybe a couple of drinks. In the last week, we’ve seen the market decline another 1% but the price is continuing to fall. Unfortunately, with these market price drops, we have seen all scrap yards dropping their own prices.
With another 4 weeks until the meeting with President Trump and President Xi of China happening at the G20 summit in Japan, we’re going to be in limbo on what’s going to happen with the markets going forward. It’s going to be very difficult to see any type of a large increase in the month of June as we’re continuing to wait for the market to increase.
- $0.06 per lb – Copper price drop
- 50% – Of the world’s steel is produced in China
- 90% – Of the world’s rare Earth ores are produced in China.
Social Scrap from Our Facebook Group
After the holiday weekend, sometimes it can be tough getting back into the swing of things, but not when you come home to scrap waiting for you on your front step! Check out these great treasures that Scrapper Nathan came home to from Memorial Day Weekend.
Almost all of the non-ferrous markets have been in a decline and it’s been very difficult to figure out how the markets are going to improve anytime soon. Until we have a trade negotiation that ends with an actual deal and not the promise of a deal, it seems like we’re going to be in for a very tumultuous roller coaster in the scrap world.
The aluminum market has fallen, the stainless market has fallen, the insulated copper market has fallen, the brass market has dropped, and of course, the copper market has fallen leaving us without some real positive news to report. So stay tuned for the next few weeks of market news.
Reported Non-Ferrous Scrap Prices (5/22 – 5/28):
|Richmond, VA||#2 Copper Tubing||$1.80 / lb|
|Rockaway, NJ||#1 Bare Bright Copper Wire||$2.35 / lb|
|Huntington, WV||#1 Copper Tubing||$2.10 / lb|
|Freeport, NY||#2/3 Mix Copper||$0.80 / lb|
|Russellville, AR||Aluminum Cans||$0.35 / lb|
|Benton, KY||Stainless Steel||$0.20 / lb|
|Abilene, TX||Brass||$1.20 / lb|
|Cedar Rapids, IA||Insulated Copper Wire||$0.60 / lb|
|Tacoma, WA||Alternators||$0.13 / lb|
|Denver, CO||Aluminum Radiators||$0.23 / lb|
|Philadelphia, PA||Nickel||$1.00 / lb|
|Havre de Grace, MD||Aluminum Siding||$0.30 / lb|
With the Chinese producing 50% of the world’s steel, we have seen the iron ore market increasing as the scrap material flowing into the country has decreased. On another note one of the things that is overlooked but sometimes price doesn’t mean anything is the high quality of coal the US produces. This high quality of coal helps to produce a higher quality and stronger steel and iron products in the US but those prices have been kept lower because of the tariff and trade battle right now.
While overall this helps, it doesn’t matter right now as the scrap industry has been in a bit of a tailspin. As the coal powered steel mills are working at a great pace the pricing on steel has still been depressed due to the tariffs and other political factors. The best quality steel is produced in the US but the fact that the Chinese produce so much material worldwide (50% of the worlds steel, give or take), it has helped to keep the scrap prices down.
Reported Ferrous Scrap Prices (5/22 – 5/28):
|Stittsville, Ontario*||Shreddable Steel||$115 /ton|
|Murray, KY||#1 Steel||$100 /ton|
|Erie, PA||Cast Iron||$100 /ton|
|Dover, AR||Light Iron||$100 /ton|
|Melrose Park, Il||Scrap Iron||$100 /ton|
|Richmond, VA||Shreddable Steel||$0.04 /lb|
|New Iberia, LA||Cast Iron||$140 /ton|
|Chapmanville, WV||#1 Steel||$100 /ton|
|Edenton, NC||Light Iron||$80 /ton|
|Camp Verde, AZ||#1 Steel||$40 /ton|
|Vallejo, CA||Shreddable Steel||$120 /ton|
With the gas prices falling slightly and oil prices seem to be on a bit of a roller coaster swing up and down over the last month we have not seen the other markets really having too much of a crazy impact. We’ve seen gold continue to dip below $1,300 an ounce in the US stock market has been relatively strong although with so many questions it has also been relatively unstable at times.
I love hearing ideas, thoughts, and anything that could help us learn more about what you see in the market doing and we want to be able to get that information to you as swiftly as possible. Let us know what you see, feel, and have any ideas about.
- Tariffs & Trades: Dropping Prices – 5/22/19
- How Gas Prices & Scrap Prices Are (or Are Not) Related
- 6 Best Strategies For A Dropping Scrap Market