Flat Out Flat
Nonferrous scrap pricing and demand are both stuck in ruts that are most often referred to by dealers as stagnant, depressed and flat.
A scrap dealer in the Midwest says it will take overall economic good news and boosted confidence before increased industrial production lifts the nonferrous sector. Buyers of aluminum scrap, he notes, "are holding the line firmly, and going down with their bid numbers instead of up. Even multiple truckloads don’t get you [additional] money."
Both primary and secondary aluminum makers are leery of making more product than lackluster manufacturing operations are likely to consume.
"When these manufacturers have a firm belief that the economy has turned around and they’re going to sell more cars or appliances, that’s when things could change," the scrap dealer notes. Until then, suppliers of parts, sheet metal, ingots, sow and even scrap are in a "just-in-time mode, wondering what to do with their aluminum 30 days from now."
A scrap dealer in the Southeast notes that "appointments are getting longer for both aluminum and copper. Copper is really way out, especially domestically."
A California-based consumer of aluminum scrap says material is not hard to come by, but selling ingots remains difficult. "It started to tail off toward the end of last summer. Now, with demand down, when buyers do come in there are a lot of players to choose from."
A Texas dealer believes prices will improve after Labor Day. "I see another five or 10 cents likely on copper, and four or five cents on aluminum. I see a hot market come November."