Good afternoon,
Last month’s upward movement continues aggressively in February while reacting to the threatened tariffs, and we’re seeing the impact with responses from end consumers.
Steel:
The currently proposed 25% tariff on steel has created an approximate 10% increase in scrap pricing for February. If these depending on the country of origin, could likely lead to another significant increase in the near future. Some steel mills have reported they are not producing at full capacity and are waiting for 1) increased prices and 2) clarity on what the tariff percent will be when final as well as the length of the tariff before expanding outputs.
Non-ferrous:
Aluminum and copper have been reacting to daily international updates. Most revolving around the imposing US tariffs. Copper rose over 30 cents in a few days only to retreat back wards this Tuesday. However, exporters and copper foundries have widened their spreads to historic levels, trying to offset the market increase.
Canadian aluminum exporters, which are the US’s largest importer of primary aluminum, have reduced their volumes. Many US mills have idled some facilities and are waiting on profit analysis before restarting.
The UBC market is waiting for tariff clarity which is expected to continue to raise prices like other industries. However, these mills have also widened their pricing to offset the hike.
Stainless and Alloy:
Nickel prices are rather flat over the past month, and overall market interest remains subdued due to stagnant mill demand and steady supply. While potential legislative action in the Philippines to ban ore exports could stimulate future pricing, any significant impact is likely years away.
Stainless steel grades 304 and 316 continue to hold steady, whereas chrome stainless grades have experienced a minor uptick, indicating some strength in that segment.
Aerospace and high-temperature alloy prices continue to decline as cobalt weakens, with limited demand from producers exacerbating the downturn. Grades with higher cobalt content are seeing sharper price reductions due to the metal’s continued depreciation and lack of purchasing activity.
Titanium prices have retreated slightly as stricter qualification standards have narrowed the applicable use of certain grades, leading to weaker demand from mills. Additionally, increased business at Maintenance, Repair, and Overhaul (MRO) facilities suggests that manufacturers are prioritizing equipment longevity over new material purchases to avoid costly replacements. This shift, coupled with reduced global trade activity compared to 2024, points to a broader market slowdown.
High-speed steel prices have also declined slightly, reflecting the continued weakening of cobalt. Meanwhile, tungsten alloys and carbide pricing remain in a state of uncertainty, as the market stabilizes in response to China’s newly imposed export standards, which took effect on February 4. The long-term implications of these regulations remain unclear, adding an additional layer of unpredictability to the global metals market.
