The recycled metals market: Haunted by uncertainty

Aluminum

The volatility in the aluminum futures market directly affects the non-ferrous scrap market. When futures prices are soaring, as we saw with October aluminum contracts earlier, scrap prices typically rise in response. This can benefit scrap dealers and processors since they can command higher prices for their material in a bullish market. However, the sudden drop in futures, like the discount seen now with November contracts, can lead to a quick reversal in scrap prices as well.