While we’re seeing some non-ferrous commodities approach historically high levels, on the whole, uncertainty surrounding the impact of tariffs on global markets continues to dominate. Business sentiment remains subdued, with limited expectations for robust growth in the near term as stakeholders await the outcomes of U.S. tariff decisions and how other nations may respond.
Steel:
March steel pricing has settled with a modest increase in Prime and Secondary scrap metal, while steel turnings remain the same as last month. Uncertainty of proposed tariffs on steel while it has changed throughout the past month has led several steel users to increase their purchases even without the demand. While some countries have retaliated to US tariffs, others like Brazil successfully avoided US tariffs through direct talks. The removal of steel import quotas and nontariffed systems by the US, even as President Donald Trump reimposes steel tariffs, may help level the international playing field, allowing countries that have been unable to compete for years in the US steel market a chance to sell steel into the country.
Non-ferrous:
Copper buyers have widened spreads for copper scrap because of uncertainty surrounding the possible implications of tariffs and a slowing global economy. Spreads have opened between 25 cents to 50 cents per pound depending on the grade of copper. Argus Metals reports that US copper exporters struggle to remain competitive because of the wide arbitrage between the CME and the London Metal Exchange (LME), which reduced export options and increased material in the domestic market from dealers that typically export.
While aluminum sales volumes remain depressed, the uncertainty of both the March 12 tariff and the postponed 25pc all-goods import tariff on March 6 is adding some support to the market, with some mills saying the on- and off-again tariffs delay long-term pricing decisions.
Used beverage can (UBC) mills have raised buying prices this week as the London Metal Exchange (LME) prices rose to nearly a three-year high. Tariff confusions also lent some support to secondary scrap and alloy prices.
Check out our UBC Division here https://usmrecycles.com/usm-processing/
Stainless and Alloy:
Modest uptick in LME Nickel relative to its 30-day average, a shift that pales in comparison to the immediate impacts tariffs have had on Aluminum and Copper markets. Most gains have been realized in the past week, signaling a brief yet noteworthy surge. Meanwhile, anticipation for an increase in demand for 304 and 316 stainless steel, driven by a slowdown in scrap flow and the strengthening of ferrous values. However, the Molybdenum market remains weak, which tempers the potential gains in 316 stainless steel. Conversely, chrome stainless values have edged upward, finding support from the robust ferrous market.
High-temperature alloys, pricing has remained stagnant, despite a surprising reversal in the Cobalt market. Mills and end-users alike are exercising caution, adopting a wait-and-see approach as they assess the potential impact of tariffs on global supply chains and pricing structures.
Titanium prices are in a lull, as cheaper units circulate and are consumed before users seek prime-grade material. A more optimistic outlook is expected once the implications of tariffs and shifts in global scrap flows become clearer. Anticipation is also building for an uptick in Aerospace and Defense orders, which could drive pricing by mid-to-late Q2.
Tool Steel and High-Speed Steels have remained relatively flat, despite a strengthening ferrous market and the rising Cobalt prices. Consistent demand for Tungsten alloys persists, though there is hope for improved scrap values moving forward.
