Metal Market Dips After Fed Rate Hike- 5/5/23

he Metal Market as a whole is trending down after we saw another Fed rate hike on Wednesday that now brings us to a 5.25% Fed fund rate.
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Jerome gave absolutely no hints of cutting this rate in the near future, and it is looking like he wants to keep it above this 5% number for a long time.


As far as metals go, We are hearing unconfirmed reports of Steel being down between 20-40$ a ton.


The price of new steel has dropped consistently throughout the month of April and we are fairly certain the oversupply of new product is going to impact scrap metal prices in some way.


The dollar is still strong and is sitting between 101 and 102 but the real factor bringing metals down is fear of an overall economic downturn that will dampen demand for copper, aluminum, and stainless steel.


These metals as you know are in every industry from home building to industrial production. And the feared slowdown in these areas is due to a credit crunch in the overall financial system.


Although we are seeing these losses, these numbers over the long term really aren’t that bad when you consider the highs and lows of scrap metal pricing in the past.


We will keep you posted as May steel prices will be posted early next week.