PVF News: Copper and Carbon Steel Updates

From the new ASA Industrial Piping Division Materials Market Digest, copper futures are trading at $5.14 per pound, an increase of nearly 7% over the past month. The recent price rally is primarily attributed to supply disruptions following the suspension of operations at Indonesia’s Grasberg mine, the world’s second-largest copper mine, after a catastrophic mudslide that claimed two lives. Additional upward pressure has also come from a weaker U.S. dollar and renewed market optimism over a potential Federal Reserve interest rate cut in December. In response to these developments, a new copper tubing list price was issued at the end of September.

Also in the new MMD, available to all ASA Industrial Piping Division companies, carbon steel (hot-rolled coil) is trading up just under 2% in the last 30 days. U.S. manufacturer Atlas Tube, the structural arm of Zekelman, has announced a $50/ton increase on both hot-rolled and cold-rolled product. 
 

Often, planned shutdowns in Q3 and Q4 can cause vertical pressure on pricing, though this year with the softer market, it may simply stabilize prices. Additionally, lead times are stretching, leading some analysts to predict further increases. Finally, there was some hope that a U.S.-Canada deal would be reached soon, but talks between the nations have since stalled.

The ASA Industrial Piping Division’s Materials Market Digest includes updates and trends on commodities and other items of interest to those ASA members doing business in the industrial and mechanical PVF space.

Want to be added to the mailing list to receive the IPD Materials Market Digest each month? Contact ASA’s Mike Miazga at mmiazga@asa.net.