Scrap Metal Market Update: Palladium Leads Selloff, Copper Holds Firm — October 2026

Scrap Metal Markets Under Pressure: What Sellers Need to Know This Week

It's a tough week to be holding scrap metal inventory — at least for most metals. As of October 1, 2026, broad selling pressure is weighing on precious metals, aluminum, and zinc, driven by a stronger U.S. dollar and rising Treasury yields. The one bright spot? Copper is quietly holding its ground, supported by ongoing mine-supply concerns. Here's a full breakdown of where things stand and what it means for your business.

Market Snapshot: The Numbers at a Glance

The headlines this week are hard to ignore. Palladium is the worst performer, down 8.8% over the past 30 days and shedding another 6.31% in just the last five trading sessions — landing at $1,172/oz. Silver isn't far behind, falling 4.6% on the month and 5.01% this week to $61.09/oz. Aluminum has also taken a notable hit, dropping 4.3% to $1.42/lb.

Gold slipped 3.5% to $4,175.30/oz, while platinum fell 1.4% to $1,710/oz. Rhodium is holding up a little better than its precious metal peers, down just 0.6% on the month to $9,100/oz, though its five-day momentum shows it isn't immune to the pressure. Nickel is off 3.0% at $7.19/lb, lead is sliding sideways to soft at $0.84/lb, and zinc is sitting near recent lows at $1.79/lb.

Steel and shredded scrap remain the calm in the storm — both completely flat at $366/mt and $413/mt, respectively. And then there's copper: up 0.9% on the month at $6.59/lb, though it has softened slightly over the past five days.

What's Driving the Selloff?

A Stronger Dollar Is Squeezing Precious Metals

The primary culprit behind the precious metals decline is a resurgent U.S. dollar. The dollar index climbed roughly 2% in September, reaching a two-month high. Since most metals are priced in dollars globally, a stronger greenback makes them more expensive for international buyers — which typically dampens demand and pulls prices lower.

At the same time, rising U.S. Treasury yields are adding to the pressure. Higher yields increase the opportunity cost of holding non-yielding assets like gold and silver, pushing some investors to the sidelines. While markets have largely ruled out a Federal Reserve rate hike in October, a possible December hike remains on the table — and that uncertainty is keeping a lid on any near-term recovery in precious metals.

Copper Is the Outlier

Copper's relative resilience comes down to supply fundamentals. Mine-supply disruptions and longer-term demand from electrification and infrastructure continue to underpin the market. That said, the stronger dollar and softening short-term momentum mean copper isn't immune — it's just holding up better than everything else right now.

Industrial Metals and Base Metals Feeling the Pinch

Aluminum and zinc are both reflecting broader industrial slowdown concerns alongside the dollar headwinds. Nickel has similarly drifted lower. Lead is moving sideways with a soft lean. None of these metals have a clear near-term catalyst for a sharp reversal, which makes timing important for sellers.

Key Takeaways

• Palladium is the biggest loser this cycle — down nearly 9% on the month. If you're holding palladium-bearing scrap (think catalytic converters), the window to sell at stronger prices may have already narrowed.
• Silver has dropped sharply in both the 30-day and 5-day windows — sellers of sterling, photographic scrap, or industrial silver should watch this closely.
• Copper remains your best relative value right now among actively traded scrap metals. Monthly gains are still positive, even if this week has been softer.
• Steel and shredded scrap are stable — flat pricing offers predictability for ferrous sellers planning their next move.
• Aluminum and zinc are weak — if you have flexibility on timing, monitoring for a stabilization signal before moving large volumes may be worth considering.
• The dollar and Fed policy are the macro story to watch. Any shift toward a more dovish tone could quickly reverse precious metal pressure.

What This Means for Scrap Sellers

Market pressure doesn't have to mean missed opportunity — it means timing matters more than ever. For sellers of precious metal-bearing scrap, the current environment favors moving material sooner rather than waiting for a recovery that may take weeks to materialize, particularly if a December rate hike materializes as expected. For ferrous sellers, the flat steel market offers a stable baseline — use this period of calm to position inventory strategically. And for those holding copper scrap, now is a reasonable time to engage buyers while the monthly trend is still positive, before any further dollar strength chips away at that advantage.

The bottom line: be active, be informed, and don't let a down market catch you flat-footed. Competitive bidding from motivated buyers can still generate strong returns even in a softening price environment — especially when you're reaching the right audience.

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