The traditional end-of-year slowdown for ferrous scrap market was nowhere in sight in November. Other recyclables did not fair as well, however, but there is hope in most markets for pricing strength in the near future.
Pricing for ferrous scrap jumped considerably from October’s levels. Most major grades settled at approximately $30 per gross ton higher across all domestic regions. Many scrap consumers bought in bulk to replenish their supply in an effort to stay away from further price increases in Decmber and January.
Though the end of the year is traditionally a period of weakening for the scrap ferrous market, this year looks to conclude rather differently. Market observers point to low inventory and the limited transportation opportunities tied to bad weather as major reasons behind the expected pricing increases.
Tags for copper scrap grades fell slightly from October’s levels with major grades like bare bright and No. 1 copper losing around $0.15 per pound. Rumors abound that renewed Chinese appetite for the red metal could lead to a strong 1Q for copper scrap pricing.
Aluminum scrap witnessed less dramatic price erosion, as most major grades fell $0.01 per pound. The aluminum market has enjoyed minimal volatility in the recent past due to strong demand from the automotive industry.
The recycled paper market witnessed decreases in the Southeast. Pricing for OCC (old corrugated containers) fell $5 per ton, while SOP (sorted office paper) also dropped $5.
OCC pricing in the Midwest and Southwest also fell $5, while prices in the Northeast remained unchanged from October’s levels. SOP prices dropped $10 in the Southwest but remained stable across the remainder of the regions.
Disclaimer – Prices and market related information shown has been obtained by many sources across many commodity markets. InStream has not verified the information beyond our sources. Information is based on assumptions and projections based on current market drivers. This information is provided as a service and InStream is not recommending action based on the market information provided and is not responsible for the direction of markets and/or results based on the data provided.