Market
April 9, 2024
Non-ferrous recycled metals spreads
Written by Gabriella Vagnini
Metal flows are off and supply is tight. Even though the economy seems to be thriving, spreads are tightening. Mills are paying anything (a bit of an exaggeration), but the willingness for mills to pay asking price just goes to show the tightness that is out there.
Despite Fed Chair Jerome Powell’s cautious stance on rate cuts, expectations remain high, with attention turning to regional Fed presidents’ forthcoming remarks. Rate cuts are anticipated in Q4.
CPI release is Wednesday morning. Predictions are 1% lower from previous month, however the YOY CPI is predicted to increase. Equity’s reaction on Tuesday tells us to watch CPI closely on Wednesday morning.
Copper spreads are off May; however, I have spoken to some that have already started pricing off of July.
| Aluminum (MWUSTP $1.29/lb, LME 3M $2460/mt) | Spread |
|---|---|
| 1101 Bare | 82.5% |
| 3003 | 86% |
| 5052 Bare | 88.25% |
| 6061 Turnings | 63% |
| 6061 Sheet/Plate/Clip | 70% |
| 10/10 Extrusion | 76% |
| 6063 Bare Extrusion | 86.5% |
| EC Chops | 87% |
| EC Wire | 84% |
| Irony Extrusion – 95/5 | 71% |
| Litho | 76% |
| MLC | 71% |
| Old Sheet | 64% |
| PAS | 69% |
| Car Rims – Clean (Limited) | 80% |
| UBC | 68.5% – 70% |
| Wheels – Dirty | 78% |
| Copper | |
|---|---|
| Bare Bright | May less 10.5c |
| #1 Copper | May less 18.5c |
| #2 Copper Shredded roughly 92% | May less 65c |
| ICW #1 (x recovery + processing 10c) | May less 20c |
| ICW #2 (x recovery + processing 10c) | May less 35c |
| Birch/Cliff | May less 31.5c |
| Copper Rads | May less 42c |
| Copper Chops | May less 29.5c |
