Scrap Metal Prices and Scrap Metal Auctions

Base metals

Base metals fell sharply in the last week as the financial market mood continues to remain weak on concerns that the world economies are sinking into an intensifying recession. The current crisis is expected to continue well into 2009 as much the developed world is expected to remain in recession.

Since the developed countries are facing a crunch, the developing nations that depend on exports to these countries will also be hurt. Hence, all these concerns are leading to fears of lower demand in times of weakening global economic situation.

Since trade takes place on a global level, the crisis is into a two way street where no one can escape the effects of a massive pile up. Copper inventories continue to rise steadily and this situation indicates that the demand is weak. The metal has breached its important support of $3370 on LME and presently trades around the $3200 mark. Aluminum prices continue to face the pressure of falling crude oil prices ($45 levels) as a decline in oil prices means lower cost of producing primary aluminum as energy costs are approx 40% of total cost of production. This reduces concern over supply of aluminum in the market.

Courtesy: www.commodityonline.com

Filed under: Base Metal Prices, LME prices, recycling prices