Following a flat October, the ferrous scrap metal market in Chicago remained unchanged in November, marking the sixth consecutive month where industrial-grade scrap prices flatlined. Non-ferrous prices are subdued due to limited demand from both domestic and international buyers.

Chicago’s Ferrous Scrap Market

November’s trade began on the 6th, following the U.S. Presidential Election, introducing uncertainty regarding how the election results might influence the month’s market dynamics. Ferrous scrap metal prices in Chicago remained at October’s levels across all grades, with prime and cut grades remaining unchanged since June. In October, Chicago and Detroit missed out on the $20 per gross ton price increase seen in other markets across the country. In November, the Midwest once again forgoes any price gains. Positive factors, such as tight scrap supply, offered support, though the outcome was ultimately tempered by weakening exports, falling hot-rolled coil (HRC) prices, and multiple mill outages.

“The monthly trading period feels like Groundhogs Day, with the same patterns repeating month after month,” says Lou Plucinski, President. “With no price movement, there’s little room for negotiation.”

Although most major mill outages that started earlier wrapped up by late October, North Star BlueScope and SDI have scheduled shutdowns extending into November. These outages, which began in August, have lowered scrap demand and added downward pressure on prices. Meanwhile, several other U.S. flat-rolled steel producers are re-entering the market as they complete their maintenance.

Chicago’s Non-Ferrous Scrap Market

Non-ferrous prices in November remain low due to weak demand from both domestic and international consumers. While nickel prices have shown a slight uptick this month, stainless steel prices fell last week, indicating that the remainder of 2024 is likely to be a down market.

Aluminum prices are trading sideways with minimalAluminum Recycling movement in LME pricing and subdued demand. Although there’s some optimism following the election results, mill sales and demand remain soft. Business is expected to stay slow through year-end, with a more positive outlook for 2025.

Copper prices rose sharply after the election results last week, driven by expectations that a Trump presidency could lead to new tariffs on Chinese goods. This potential shift may prompt China to increase stimulus measures to counteract the effects of higher tariffs, which is typically seen as favorable for copper demand, as China is the world’s largest copper consumer.