How Oil Prices Are Upsetting the Metal Markets: Weekly Update
ALSO: Is Stainless Steel bottoming out?
Report Date: 9/20/23
Tricky Market Dynamics
Good Day, Scrappers!
The world of metals continues to pose a complex puzzle. With oil prices recently hitting 10-month highs, ripple effects are evident in the steel industry, where prices have begun to wane. As we’ve previously discussed, the upward trajectory of oil prices doesn’t bode well for metal markets for the remainder of the year.
Non-Ferrous Metals: Copper’s Stagnation
Copper remains an enigma, with no noticeable surge in demand or price. Recent reports and projections aren’t showing any promising signs either. The prevailing high-interest rates at multi-decade levels serve as an additional bottleneck for companies looking to borrow or reinvest in operations.
Non-Ferrous Prices & Market Status
Ferrous Prices & Market Status
Ferrous Metals: The Oil-Steel Connection
The surge in oil prices, nearing $100 per barrel, threatens to bring more bad news for steel prices. Given the current trajectory, if you’ve been holding onto any steel, don’t expect your patience to pay off financially anytime soon.
Catalytic Converters: A Slight Uptick
- Catalytic Converters – SELL
Catalytic converter prices have increased slightly, buoyed by a 2-4% rise in platinum and palladium. However, these gains might not feel significant, given the broader market shrinkage over the last year. Remember, the team at RRCats.com offers a 10-day price hold and free shipping on all OEM catalytic converters.
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.
Other Markets: The Fall of Stainless Steel
Stainless steel prices are in dire straits, heavily influenced by nickel prices hitting multi-month lows. The technical challenges of working with nickel add to the cost of processing, setting the stage for further declines in stainless steel prices.
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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.