The commodities trade market is struggling as steel and aluminum free fall continue but trade talks between U.S. and China resume.
With the lack of a trade market with China, scrap metal prices continue to suffer. Both the domestic and export market are very weak potentially due to an upcoming trade deal. In recent days there have been promising compromises from both the U.S. and Chinese sides though at this point nothing to improve the metal market on a whole, let alone the scrap market specifically. Last month, the US-China trade deal was on rocky footing so it seems as though things have been stabilizing a bit between the two countries.
In this months report, scrap steel prices declined by 0.75% related to the previous month. This is now the fifth consecutive month the scrap steel market has declined in a row. If you are looking for something positive though, the 0.75% month-over-month decrease is the smallest drop in value during this period. The decrease in value overall was a little over $1/ton bringing the average price of scrap steel from crushed auto bodies to about $159/ton. Year-over-year the market has fallen over 21% as scrap steel was still priced over $200/ton in September 2018.