November 2024 – Market Update
Ferrous Market
December’s market saw unusually mild weather, which ensured a steady flow of scrap materials, while stagnant hot-rolled coil (HRC) prices limited the purchasing power of steel mills. Additional challenges included weak domestic demand and flat export activity. Year-end inventory management practices further dampened buying interest. Although many mill outages concluded earlier in the year, their long-lasting effects on reducing scrap demand have continued to heavily impact the market, preventing the typical price increases seen in December during previous years.
Non-Ferrous Market
In December, copper has shown promising signs, with prices reaching their highest level in nearly a month. However, analysts have lowered their copper price forecast, citing concerns over potential trade tariffs from the new Trump administration in the U.S. and ongoing economic risks in China, which could suppress consumption and prices in the coming year. In December, copper has demonstrated promising signs, with prices climbing to their highest level in nearly a month. However, analysts have revised their copper price forecasts downward, expressing concerns about potential trade tariffs from the new Trump administration in the U.S. and persistent economic risks in China. These factors could suppress consumption and prices in the coming year.
Stainless steel scrap market is grappling with significant challenges as we move through 2024. The decline in nickel prices, a vital component in stainless steel production, has negatively impacted scrap values. Moreover, a contraction in global stainless steel production has led to decreased demand for scrap materials. To make matters more complex, rising inflation and an influx of imports from Asia are further straining market conditions. Addressing these issues is crucial for stabilizing and revitalizing the market.
The aluminum market is showcasing impressive stability, with both primary and secondary grades holding steady. This resilience as we enter the new year is a strong indicator of positive momentum. Additionally, the slight upward pressure on certain grades suggests the potential for a thriving aluminum market in the year ahead. Embracing this trend could prove beneficial for stakeholders looking to capitalize on future opportunities.
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