Ferrous Market
After the December negotiations over domestic ferrous scrap market prices were concluded, scrap suppliers were hopeful that the new year would bring a reversal of the downward trend in scrap prices that had persisted throughout 2024. As January price negotiations began on January 6th, it quickly became clear that domestic mills were eager to replenish their scrap inventories but were not willing to accept significant price increases. The domestic mills had several advantages that allowed them to take the lead during the January negotiations: there was an excess supply of ferrous scrap both domestically and globally, global scrap markets were maintaining a bearish sentiment due to weak demand for finished steel, and steel mills continued to produce and sell large quantities of billets at low prices to markets in Southeast Asia, Turkey, and other countries.
In reality, the January price increases have given suppliers back the dollars they lost from their November and December domestic scrap sales, but looks like Q1 higher scrap prices will be difficult to achieve.
Non-Ferrous Market
The terminal markets for copper, aluminum, and nickel have experienced relative stability for the second consecutive month as the scrap markets seek more clarity. As long as there is uncertainty regarding potential tariffs and retaliatory tariffs, we can expect volatile fluctuations in both the terminal and non-ferrous scrap markets. Most Chinese consumers have halted purchases of copper scrap from the United States if the shipments are scheduled to arrive after the Chinese New Year, which begins just over a week after the Trump inauguration. This is due to concerns about potential higher tariffs. Overall, demand for bare copper units remains strong both domestically and internationally, except in China.
Domestic consumer demand for secondary aluminum scrap is improving but prices ae still stagnant.
Domestic and overseas mill demand for stainless steel scrap remains.
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