November 2024 – Market Update
Ferrous Market
After the trading of domestic ferrous scrap in October concluded with stable prices in the Chicago, Detroit, and west of the Rockies regions, while experiencing increases in other parts of the country, many anticipated further price hikes for November. However, domestic scrap suppliers were still bracing for a strong sideways market for the month. By the end of October, market sentiment shifted to a more pessimistic outlook as several domestic mills issued cancellation notices for unshipped October scrap, announced additional outages for November, and informed suppliers of reduced or eliminated scrap purchase programs for the month. Additionally, they indicated plans to decrease their existing scrap inventories, all amid a backdrop of weakening demand and pricing in the export market. Once again, the Midwest region saw no price increases.
Non-Ferrous Market
Scrap suppliers and consumers are cautiously optimistic that the election results will positively impact the non-ferrous scrap markets; however, they are adopting a wait-and-see approach. In November, non-ferrous prices remain low due to weak demand from both domestic and international buyers. While nickel prices have seen a slight increase this month, stainless steel prices dropped last week, suggesting that the remainder of 2024 is likely to experience a down market.
Aluminum prices are trading sideways with minimal movement in LME pricing and subdued demand. Although there’s some optimism following the election results, mill sales and demand remain soft. Business is expected to stay slow through year-end, with a more positive outlook for 2025.
While domestic mills are trying to reduce their existing scrap inventories through the end of the year, overseas demand for bare copper scrap is slowly improving as several scrap copper consuming countries have added and continue to add new melting capacity to compete with Chinese consumers that currently consume over 50% of the bare copper units that are generated every year. Demand for red and yellow brass scrap continues its slow improvement especially from Asian consumers.
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