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Metal Market Report | September 2016

Ferrous:

Crisp morning air, colorful autumn leaves and the Utes vs. Cougars rivalry game signals that the best time of the year is rolling in!  Unfortunately, scrap prices – especially ferrous materials – are experiencing a “fumble” this September.  It appears the summer lag is extending into the autumn months due to slower domestic steel sales and falling steel prices bolstered by imports continuing to circumvent duties and find their way into the U. S. market. The Midwest and Eastern ferrous markets are falling $20 this month while here in the Intermountain West we are seeing a $10 decrease. The discrepancy of price in the regions is largely due to the activity last month where most of the country was sideways but our market was down $10.

 

U.S. ferrous scrap exports continue to be in low demand and spotty to major destinations flooding the domestic market with ample tons. This supply glut coupled with softening 3Q sales and softer 4Q projections has once again caused price erosion for scrap grades leaving us to wonder where the bottom of the market will emerge.

 

Non-Ferrous:

Base metals were mixed in August with copper seeing the largest price weakness. The softening has continued thus far in September currently falling below the $2.10/lb mark. The remainder of base metals saw a pretty flat August with modest increases and continuing their 6 and 12 month growth trends.  Ferrous prices have lost their previous 6 months gains playing a sick game of “groundhog day” with all of us.  Hopefully we are at or near the bottom and poised for some stability and potential growth in the coming months.

 

As of September 8, 2016 % Change
COMMODITIES 1 Month 6 Month 12 Month
Copper Comex ($/LB) $         2.14 -2.8 -4.2 -7.9
Aluminum ($/LB) – LME  $         0.74 1.4 6.8 5.4
Nickel ($/LB) – LME  $         4.69 1.1 15.8 2.8
Lead ($/LB) – LME  $         0.83 0.0 1.2 8.4
Zinc ($/LB) – LME  $         1.03 3.9 21.4 20.4
Gold (LB/OZ)  $  1,340.00 0.2 7.1 16.6
Silver ($/OZ)  $       19.51 -2.3 21.0 23.7
Crude Oil ($)  $       44.90 0.2 15.5 4.5
Scrap Steel Prices – No. 1 Heavy Melt (Intermountain west) -7.1 7.1 -3.6

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