
Good afternoon,
We’re continuing to see some weakened commodities as we near the summer months. The market is clouded by uncertainty, particularly regarding the future impact of tariffs. Domestic consumers continue to exhibit some buying interest, though activity levels are noticeably down compared to this time last year.
Steel:
Steel prices tumbled across all grades this month with ample scrap supply, and seasonally stronger inbound flows in the construction sector. Manufacturing has seen a slow down in some areas, including Automaker Ford temporarily shutting down production at it’s Chicago assembly plant following supple chain disruption. These factors combined have led to smaller than expected buying programs for the steel mills in many regions.
Non-ferrous:
While the copper gained back some of its April loss due to the pause on some tariffs, the export market has remained tight with minimal interest for material. Copper spreads remain wide with the continued oversupply in the domestic market and no growth in consumer outputs.
Aluminum pricing has remained fairly consistent over the past month with current demand keeping up with the supply. Some tariffs were reduced this past weekend between the US and China following trade talks this past weekend in Geneva. We’ll see over the next few weeks how this impacts pricing.
Used beverage can (UBC) consumers have secured material for May and much of June. Material previously being exported is now staying domestic resulting in a backlog of recyclables.
Stainless and Alloy:
Following the disruption in pricing during April, the 30-day average for LME Nickel has remained confined within a narrow trading range. Pricing for both Stainless and Chrome Stainless remains relatively stable, though a short-term decline may be on the horizon as iron markets are softening this month. Manufacturing output has slowed, leading to reduced scrap generation. This tightening of supply is contributing to price stability in Stainless Steel, with demand holding steady for now.
Certain High-Temperature Alloys continue to enjoy solid demand, though others are experiencing increased downward price pressure driven by shifts in usage and reduced demand. The timing of a recovery in this segment remains uncertain.
The Titanium market continues to face challenges amid the broader manufacturing slowdown. Mills are opting for lower-cost inputs, which is exerting further pressure on prime-grade Titanium values. Tool Steel, High-Speed Steel, and Tungsten Alloys are maintaining their value well. Limited imports from China have fueled increased domestic demand, supporting pricing resilience in these categories.
