September Scrap Market Update: What’s Going On With Steel, Copper, Aluminum, and More
After a quick settlement in the U.S. steel scrap market last month, some people were hopeful prices would go up in September. But as August came to a close, it became clear that scrap prices were facing downward pressure.
Here’s why:
With all of that going on, it was no surprise that price negotiations got heated. By the end of the first week of September, prices for prime scrap dropped about $20 per gross ton. Other scrap grades like shredded scrap and HMS (heavy melting steel) stayed flat.
Looking ahead, unless demand for finished steel picks up in the U.S., steel production and scrap prices are expected to stay about where they are now. Even if the Federal Reserve cuts interest rates next week, we shouldn’t expect an immediate economic boost — but it could be a step in the right direction.
Non-Ferrous Scrap Markets (Copper, Aluminum, Nickel)
Things have settled down a bit in the non-ferrous scrap markets since the end of July, but we’re still feeling the impact of tariffs and other economic pressures.
Copper prices have stayed in a tight range, going up just $0.10 per pound over the past month. The gap between U.S. (Comex) and international (LME) copper prices has also narrowed, showing that the U.S. market is stabilizing a bit — though demand from overseas buyers is still weaker than usual.
On the scrap side, exports of copper scrap are stronger than the domestic market, where demand remains soft. Red and yellow brass continue to see stable demand both at home and abroad, and prices are holding steady.
Aluminum prices have also been relatively steady. The London Metal Exchange (LME) aluminum price moved in a $0.25/lb range and ended up slightly higher. The Midwest premium — an extra cost added for shipping and handling aluminum in the U.S. — has held between $0.70 and $0.72 per pound.
Demand from domestic mills for certain types of aluminum scrap, like extrusions and alloyed materials, usually slows during the summer — and that trend is holding true this year. Even so, prices are being supported by the 50% tariff under Section 232, keeping things relatively firm.
The market for secondary (recycled) aluminum scrap remains healthy, with stable prices and solid demand from both U.S. and international buyers.
Nickel prices haven’t moved much, finishing slightly down over the past month. Demand for stainless steel scrap, especially the common 300 series, is typically slow during the summer — and this year is no exception.
Mills are doing their usual maintenance shutdowns, and both domestic and export demand for stainless steel products is sluggish. Still, prices for 300 series stainless scrap have stayed stable, helped by the slower flow of scrap during the summer months.
Bottom Line
Overall, the scrap metal markets are facing a mix of seasonal slowdowns, global economic uncertainty, and ongoing supply chain shifts. While prices for some materials are holding steady, others like prime steel scrap are under pressure. We’ll be keeping a close eye on demand trends, interest rate changes, and global trade flows as we head into the fall.
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