By Reports show that scrap metal categories (e.g., copper wire, aluminum extrusions, brass) are increasing in price in North America, India and China.
Meanwhile, stricter import controls by Asian regulators are affecting flows of secondary material.
Secondary raw materials are a key buffer on supply shortage. If scrap supply is constrained, it diminishes the capacity of the market to offset primary metal shortfalls and which adds upward pressure on primary metal prices.
Trade, Tariffs & Supply Chain Risks
Trade tensions and tariff policy changes are affecting raw materials: tariffs on copper, aluminum and nickel are causing volatility.
For example, the US’s tariffs and rule-making around raw material imports have ripple effects on non-ferrous cost structures and global flows.
Take-away: External factors (tariffs, trade policy, regulation) are increasingly material for non-ferrous markets; investors and users should monitor them closely.
If scrap supply is constrained, it diminishes the capacity of the market to offset primary metal shortfalls
