JUNE 2024 – Market Update
Ferrous Market
The mild demand has led to another month of soft sideways ferrous scrap metal prices in the Midwest. The imbalance between supply and demand is unlikely to change in the near future. Scrap prices are under pressure due to planned summer shutdowns at several important steel mills across the US. The scheduled maintenance shutdowns at these mills in June have dampened scrap metal demand in Chicago. Many steel mills issued end of the month cancellation notices for all unshipped scrap from their May orders signaling that they fully expected to be able to purchase scrap at lower levels for June delivery. Scrap flows usually slow down during the summer months which hopefully will bring the supply/demand ratio into better balance allowing scrap prices to stabilize during the third quarter.
Non-Ferrous Market
In May, there was significant volatility in the copper market, in what has been coined “May Mayhem” with prices surging nearly 11%. Copper got totally out of whack and there was a total disconnect between the copper future prices and real demand. Stainless steel prices have remained stable. As we approach the summer months, there are still uncertainties about mill scrap demand, and inbound material flows have been slowing. Over the past 30 days, aluminum prices have seen a modest increase. Export demand for secondary aluminum grades remains strong, which should help sustain prices through the summer months.
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