Key market trends and their impact on the future of recycled metals

The aluminum scrap market is currently navigating a period of volatility, reflected in the stabilization of the LME 3month price following the recent U.S. jobs report. The broader economic uncertainty is influencing demand, particularly in sectors like construction and manufacturing.

While the Federal Reserve may cut rates in response to weaker job growth, the impact on immediate aluminum scrap demand may be muted due to uncertain economic conditions. However, if rate cuts stimulate industrial activity, we could see scrap demand and pricing improve by the end of Q4.