Market seeks a break, but CN threatens derailment

The non-ferrous recycled metals market is still in its summer slump. It continues to experience sluggish intake, with scrap yards reporting that the flow of material remains slow. The slow physical market has also affected the secondaries, as they are said not be taking on any more material. That reluctance by the secondaries also highlights just how tough things are in the auto industry right now. When RMU spoke to people in the field, it was clear that no one is expecting a big surge in demand anytime soon. Instead, they’re just hoping the market can hang in there until after the U.S. elections, with the idea that their preferred candidate might just help turn things around.

The downstream market isn’t faring much better either, as the order books for the year over year are showing a noticeable decline. This decline is reflecting the weakened state of demand across the board. Sources are also saying that the service centers already have ample inventory due to the weak demand. This apparent abundance of domestic supply, coupled with diminished demand, paints a challenging picture for the industry in the near term.