As you may know by now, scrap steel prices have taken a big hit this month. The prices have finally settled and our scale price has dropped to $85/ton for sheet iron. Unfortunately, there are several factors contributing to the decline, making a quick turnaround unlikely. The two biggest causes of the massive drop this month are decreasing worldwide demand for scrap steel and the increase in the value of the dollar. Barring a major worldwide event, we would not expect to see prices go much higher than they are now until summer at the earliest, but most likely ferrous prices will be down for all of 2015.
Non ferrous scrap prices have seen a more gradual decline over the last several months. Our scale price for scrap copper has dropped below $2 for the first time in a long time. Scrap aluminum, stainless, brass and other non ferrous materials are at similar lows. The causes are basically the same as that of the steel price decline, slowing global demand and a strong dollar. There is no price spike in sight for these materials either. Unfortunately, it looks like 2015 will be a tough year in the scrap metal business.
We don’t want this month’s post to be all bad news, so we are pleased to announce the return of our Detroit Tigers Opening Day ticket giveaway! For every load worth $50 or more brought to Sikora Metals between now and Friday, March 27th you will earn an entry into a drawing to win 2 tickets to the Tiger’s home opener on Monday, April 6th along with $100 cash! The drawing will be held on Saturday, March 28th. Winners do not need to be present to claim their prize.