Week in Review: Uncertainty ahead for scrap, supply chain disruptions and more

Winter is coming – and that may provide some relief for scrap and pig iron prices. RMU’s Stephen Miller wrote that we’ve seen consistent downward movement for both products over the year, but the fourth quarter has traditionally meant price increases. Here’s a look at that story and more as you close your week.

The Federal Reserve’s decision to slash its benchmark interest rate by a half-point is expected to boost labor, construction and manufacturing, which is good news for scrap demand. Overall, there’s the “expectation that lower rates will bring down borrowing costs, which will help incentivize both consumer and business borrowing,” said Joe Pickard, chief economist and director of commodities for the Recycled Materials Association (ReMA). “Hopefully that will provide some support to construction in the housing market and other loans like auto loans and consumer spending. All those things tend to be positive for the U.S. manufacturing industry and for metal demand by extension. So the expectation is that it will be generally supportive for recycling.”