Scrap Processors
August 6, 2024
Contract season is on the horizon
Written by Gabriella Vagnini
The non-ferrous recycled metals market is still in stagnant mode. While there is still anticipation that interest rates will go down and the financing doors can become open again, some say it just might be too late. So what does that mean for the September contract month? Will we be at ReMA’s Roundtable twiddling our thumbs or will we actually be locking in contracts for the new year? Well, up to last week, the sentiment from the market was a hard no, as all eyes were on Aluminum Distributing, Inc (ADI). First, we heard that they would come into the market in early 2025. Then it was Q4, 2024, but now we have heard that ADI will put metal down (start buying) in September. As one source put it “they have a plan.” So to all that were holding off, not looking to contract until seeing what ADI was going to come to the table with and practically set the benchmark, the wait is over and normal contract negotiations can carry on as they usually do in September.
The UBC price, currently trading between 74%-76%, will now have an interesting twist as everybody waits to see where ADI will be entering the market at.
We’ve been hearing that mills are pricing for Sept delivery. So say August, but have yet to hear confirmation on that.
We’ve heard that Aurubis is behind on sampling and results, but the good thing is we never see them out of the market. A midsummer reset is not uncommon.
Copper spreads are wider, with companies moving from September pricing to pricing off of December. As December landed at $4.07/lb at the close of Tuesday with the Sept./Dec. spread at 4c, it does seem like it’s starting to ease and move in the right direction. But there is still the shortage of supply that keeps the market at bay.
Stay tuned for more updates to help you with the contract season waves.
