Copper Prices Soar as Tariffs Shake Up the Scrap Metal Market – What’s Next?
Report Date: 2/12/2025
Hey Scrappers!
Scrap markets are rising, with metal prices seeing bullish trends across the board. Copper is currently trading at $4.70 per pound, and recent tariff discussions have fueled speculation-driven price increases. The Biden administration recently implemented 10% tariffs on all Chinese goods, including rare earths, while former President Trump is reviving aggressive trade policies, proposing 25% tariffs on steel and aluminum. These moves could reshape global trade, impacting scrap pricing, demand, and overall market volatility.
With the U.S. copper premium soaring to record levels and Comex copper futures reaching $920 per metric ton over LME prices, scrappers should closely monitor how tariffs and trade wars affect pricing.
Should you HOLD or SELL your scrap?
- Copper – SELL
- Aluminum – SELL
- Brass – SELL
- #1 Bare Bright Copper Wire – SELL
- Stainless Steel – SELL
- #1 Steel – SELL
- Shreddable Steel – SELL
- Light Iron – SELL
- Cast Iron – SELL
- Complete Car – SELL
- Catalytic Converters – SELL
Copper Surges Amid Tariff Speculation
Copper prices have hit their highest levels since May 2023, driven by growing speculation about potential tariffs on imported copper. While no direct copper tariff has been imposed yet, uncertainty has caused market surges. However, this rally is not necessarily backed by supply and demand fundamentals—a similar situation last May led to a price spike followed by a rapid decline. If a tariff is imposed, imported copper will become more expensive, pushing domestic copper values up and increasing scrap prices.
Additionally, the Comex copper premium over LME prices has soared, showing strong U.S. demand. However, these price increases are heavily influenced by traders rather than scrap yard pricing, so expect fluctuations. Scrappers should stay close to their yards to avoid getting caught in a price correction.
Ferrous Metals: Steel Prices Climb as Trade Wars Heat Up
The steel market is also reacting to recent trade policies. The newly implemented 25% tariffs on imported steel and aluminum could reshape the global steel trade. This move, affecting exports from Canada, Brazil, Mexico, South Korea, and Vietnam, may lead to higher domestic prices and reduced demand as manufacturers seek cheaper alternatives.
In the short term, steel scrap prices have already increased by $30–$50 per ton, and additional gains of $100 per ton are possible by the end of Q1 2025 if tariffs remain in effect. However, with crude steel production declining 1% globally and China’s steel output dropping 1.7%, international demand could soften, leading to long-term uncertainty.
Catalytic Converters: Precious Metals Show Signs of Strength
With gold at record highs, platinum and palladium show slight increases, potentially boosting catalytic converter pricing. Demand for converters is improving, though not dramatically. If precious metals continue strengthening, converter prices could follow suit.
RRCats quotes converters six days a week, has a 10-day price lock guarantee, and offers free shipping on all OEM units. Get a quote today!
For a price lock of 10 days, don’t hesitate to contact the RRCats.com Team for a better idea of catalytic converter markets and free shipping on OEM cats.
Carbide & Rare Earth News: Tariffs and Export Controls Disrupt Supply Chains
While steel and aluminum are making headlines, carbide and rare earth metals remain stable. However, China’s export controls on critical minerals could create supply chain disruptions, leading to potential price increases for tungsten, neodymium, and other high-demand materials.
Lead-Acid Batteries
Battery prices have dipped slightly, dropping by a few cents per pound. Domestic battery recyclers are adjusting to potential export challenges, which could contribute to further fluctuations.
RRCarbide is a reliable nationwide buyer that offers competitive quotes and free shipping options. Get a quote from our team today and take advantage of these benefits.
Other Scraps News
Beyond metals, global markets remain volatile due to trade talks and geopolitical factors. Oil and gas prices are expected to remain elevated over the next six months, which could impact transportation costs and overall market stability. As always, staying informed on these trends will be key to making the most of the scrap market in 2025.
That’s it for this week! Keep an eye on these trends, and we’ll be back with more updates soon.
Happy scrapping!
Other Resources for Scrap:
- Beginner’s Guide for Scrapping
- Choosing the Best Wire Stripper
- Be Sure To Have The Right Tools
- Check Current Scrap Prices Online
- Download Our FREE App
Disclaimer: This material is solely for informational and educational purposes. It should not be interpreted as a suggestion or recommendation to buy or sell any commodity or associated securities. The author, Tom Buechel, holds no positions in the commodities or securities mentioned herein. His analysis often incorporates broad perspectives to foster diversity and objectivity. He may occasionally feature contrarian views and various market influences to maintain an unbiased approach. Content provided by iScrap App.
