Are Non-Ferrous Metals Worth More Than Ferrous Metals? 

The key difference between ferrous and non-ferrous metals is that ferrous metals contain iron. Additionally, ferrous metals are magnetic, while non-ferrous metals are not. Because of their iron content, ferrous metals can more easily develop rust when compared to non-ferrous metals. When metal products are recycled, the recycling facility transforms them into a new material that can be used for an entirely new product. In this article, we’ll further break down the differences between ferrous and non-ferrous metals and discuss what kind of scrap value each type carries.

Ferrous Metals

Ferrous metals are very common. For instance, iron alloys are everywhere. Metals like carbon steel, mild steel, stainless steel, cast iron, and wrought iron contain various degrees of iron. Because ferrous metals require a great deal of carbon for their formation, their tendency to rust increases. While wrought iron and stainless steel do not often rust, most metals that rust are ferrous metals. 

Non-Ferrous Metals

​Non-ferrous metals are more malleable compared to their ferrous counterparts. The different types of non-ferrous metals include brass, copper, lead, bronze, nickel, tin, zinc, titanium, and aluminum. Gold and silver can be converted into jewelry because of their malleability. Additionally, non-ferrous metals are lightweight, which is why gold is employed in aerospace, and aluminum is vital to the canning and airline industries. It has been stated earlier that non-ferrous metals do not contain iron, thus making them resistant to corrosion. Metals that are used for pipes, road signs, gutters, and roofing are typically non-ferrous. It should also be stated that the non-magnetic nature of non-ferrous metals makes them suitable for electric wiring and small electronics. 

Pricing Estimates for Ferrous & Non-ferrous Metals 

The amount of money that a particular kind of scrap metal is worth depends on a few factors: supply & demand, market conditions, location, and the price & quality of virgin metals. With that being said, many non-ferrous metals carry more scrap value than ferrous metals. For example, copper is one of the most valuable scrap metals. While prices are constantly fluctuating, bare bright and #1 copper often sell for north of three dollars per pound. If you have any more questions about scrap metal pricing, please contact us or visit our pricing pages!

Contact Second Street Iron & Metal!

If you’re looking to sell scrap metal in the Greater Boston area, Second Street Iron & Metal is here for you! We pride ourselves on providing our clients with the best scrap prices in the region and the very best customer service! Contact us today by giving us a call at (617) 387-1188 or by filling out the contact form on our website!

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Copper in Rebound Move
Over the last few weeks cooper prices have been on a roller coaster, with prices dipping 10 cents and then quickly rebounding days later. A lot of this impact on copper prices can be due to China’s impact on the overall metal demand.Industrial metals and mining shares jumped recently as China, one of the biggest consumers of commodities, demand recovered.
In fact, Freeport-McMoRan Inc. one of the largest publicly traded copper miners reached its highest closing price in five months. March seemed to be a good month for China’s metal demand. Their overseas shipments grew 11.5 % in dollar terms during March compared to earlier this year, and compared to a 25% slump in February. And Copper imports rose for the first time in 2016 gaining 36 percent on the month.
Chinese trade data has showed stronger than expected exports and imports which suggests a stabilization in the Chinese economy. China makes up 50% of global demand in copper and this stabilization gave boost to copper. Copper for delivery in 3 month, climbed 1.3 % to settle at $4,830 a metric ton on the London Metal Exchange. Other base metals also saw a gain including aluminum, zinc, nickel, lead and tin.

By
Jill McVey

Unexpected Rise in Silver Demand
It is no secret that there has been a weakening demand for base metals in the Chinese Economy. Metal manufacturers are responding to this report by slashing outputs of copper, zinc and lead. The accidental side effect is a boost in silver prices.
About two-thirds of the world's silver output is a byproduct scrapped up when companies dig for base metals.  Thus, when the Chinese demand leads to less output of base metals, less silver is unearthed and their prices get a boost. It is reported that production for the precious metals with fall this year for the first time in over a decade. As we continue to see mine cutbacks this will affect silver, giving the metal its long overdue attention.
Even just 3 months into the year we can already see the effects of this. After 3 years of losses, prices have already gained 15% in 2016 raising prices to about $16 an ounce. Silver, often known as “the devil's metal” gets its price volatile nature due in part to its store of wealth popular during times of crisis and part to industrial metal with demand linked to the economic cycle.
Lead and Zinc prices have been falling for many of the past years resulting in some of the biggest mining companies turning to survival mode. And as a result of this, mined supply of silver is down 9.2% this year,  it is also predicted that 13% less will be mined in 2016 than 2015. As secondary silver producers, zinc, lead and copper, continue to see a big hit with lower prices, this could lead to a potentially significant boost in prices of silver moving forward.

By
Jill McVey 

Metal Market News
Stay up to date with the latest update in the Metal Market, as base metal prices continue to fluctuate following oil. As oil continues to fall so does the base metals prices. In mid-January Iraq announced record high oil production due to an oversupplied market, causing oil prices to fall 4 percent. Copper followed oil prices down with a .6 percent loss. 
Metal prices have come off a tough year in 2015, with aluminum, copper, nickel and platinum all falling. The problem the market faced is the high supply and slowdown in demand.
The Chines devaluation of the Yuan also had effects on the metal market, with the currency change bringing down the demand. But metal prices may turn around after their long downturn as China’s raw materials dependent sectors begin to show some modest improvement.
The industrial metal prices are most likely to remain depressed until the supply slows down by production cuts. Oversupply of Iron, Copper, and Aluminum are all causing the prices to remain under pressure. But there could be some light at the end of the tunnel. Aluminum demand is said to raise due to the automotive, packaging, and airline industry growth. Cooper has hopes to be in position to make profits when the markets eventually recover.
In fact, as recently as Wednesday, January 27th copper prices hit a 2 ½ week high as oil prices jumped. This has tempted investors to buy back short positions. Copper still seems to be tied up with oil. We will continue watch the oil sector as 2016 continues.

By
Jill McVey

Major Destination Shift For Scrap Metal Export
Although we continue to see a decrease from the Chinese market, there has been a recent ramp up in steel production by non-Chinese region, shifting the focus of steel scrap exporters to destinations including India, Turkey, and South Asian countries. Unlike China these countries have experienced significant rise in steel production over the past year. And the domestic scrap output is now insufficient to meet the growing steel scrap demand.
India’s steel production has risen 3.3% to 75.1 million tones over the past year, even during the time when global steel output dropped by almost 2.5%. Due to the fall in supply from domestic sources India will likely see a higher import rate of steel scrap and the scrap consumption by the country is projected to double over the next 10 years.
Bangladesh has also seen a dramatic rise over 2015 and is expected to have imports grow at the fastest pace in 2016. Scrap steel imports are expected to total around 3 million tonnes almost 5 times the consumption levels experienced in 2015. Bangladesh holds a favorable import structure which will help boost even more imports of scrap to the country.
On the other hand China’s production of steel dropped by 2.2%, which result in producers having to ship even more abroad after Chinas devalued in currency. The sinking of the yuan may make the nations exports cheaper for overseas buyers.

By:
Jill McVey