Scrap Metal Market Update: Most Metals Under Pressure — What Sellers Need to Know

Scrap Metal Market Update: Most Metals Under Pressure — What Sellers Need to Know

Tuesday, October 6, 2026 — If you've been watching your scrap metal values tick lower over the past month, you're not imagining it. Most nonferrous metals have taken a hit over the last 30 days, and while there are a few early signs of stabilization in precious metals, industrial metals remain under meaningful pressure. Here's what's moving the market right now and what it means for your yard.

Where Prices Stand Today

The broad picture heading into this week is one of caution. Precious metals have pulled back from recent highs, industrial metals are soft across the board, and ferrous scrap is the one bright spot holding steady. Here's a quick look at where key metals are trading and how they've moved over the past 30 days:

• Gold: $4,168.70/oz — down 4.2%, but showing signs of stabilizing
• Silver: $61.39/oz — down 6.5%, attempting a short-term rebound
• Platinum: $1,695/oz — down 6.3%, still weak
• Palladium: $1,150/oz — down 13.4%, the most vulnerable metal in the complex right now
• Rhodium: $9,000/oz — down 5.0%, thin market and weak
• Copper: $6.62/lb — down 2.3%, moving sideways with some conflicting signals
• Aluminum: $1.43/lb — down 5.8%, trending lower
• Nickel: $7.02/lb — down 6.8%, still falling
• Zinc: $1.71/lb — down 8.2%, the weakest base metal after nickel
• Lead: $0.83/lb — down 2.4%, soft but showing some steadiness
• Steel scrap (HMS): $366/mt — flat, stable
• Shredded scrap: $413/mt — flat, stable

What's Driving the Market

Macro Pressure Is the Main Story

The biggest force weighing on metals right now is the broader macroeconomic environment. A stronger U.S. dollar and persistently high Treasury yields are making dollar-priced commodities more expensive for international buyers — and that's keeping a lid on demand. On the flip side, softer-than-expected U.S. jobs data has reduced the odds of another Federal Reserve rate hike in October, which has given gold and silver some breathing room. Those two metals are the closest to finding a floor right now.

All Eyes on China's Return

Chinese markets have been closed for the National Day holiday and are expected to reopen on October 8. This is the next major test for industrial metals like copper and aluminum. If Chinese buyers come back with strong appetite, it could provide a meaningful lift. If buying remains tepid, it would confirm what many traders already suspect — that industrial demand is genuinely soft and prices have further to fall. Don't make big inventory decisions before seeing how that shakes out.

Copper: Don't Get Caught Up in the Headlines

Copper is getting some attention right now due to a couple of supply-side developments — LME warehouse inventories have recently declined, and workers at Chile's Escondida mine, one of the world's largest copper operations, voted 95% in favor of authorizing a strike. That sounds dramatic, but it's important to keep perspective. No legal strike is currently underway, production has not been disrupted, and these supply signals are being offset by weak demand fundamentals. Copper is essentially moving sideways. Sellers shouldn't read too much into the headlines or delay moving material in hopes of a big price spike.

Key Takeaways

• Most nonferrous metals are down over the past 30 days, with palladium, zinc, and nickel leading the declines.
• Gold and silver are the relative bright spots, showing early signs of stabilization after recent Fed rate hike odds softened.
• Ferrous scrap (steel and shredded) remains stable — a safe harbor in an otherwise choppy market.
• China's market reopening on October 8 is the next major price catalyst to watch, especially for copper and aluminum.
• Copper supply headlines are real but not yet impactful — don't let them drive your selling decisions.
• Palladium and zinc are the weakest performers and carry the most downside risk in the near term.

What This Means for Scrap Sellers

In a market like this, timing and speed matter. Sitting on inventory in weaker metals — particularly palladium, zinc, nickel, and aluminum — carries real risk if current trends continue. The smarter move is to sell these materials promptly rather than wait for a recovery that may not materialize quickly. For copper, the conflicting signals suggest a sideways market in the near term, so there's no urgent reason to rush or to hold out for a breakout. If you hold catalytic converters or other platinum-group metal (PGM) scrap, keep a close eye on palladium specifically — a 13.4% drop in 30 days is significant, and the trend hasn't reversed yet.

For your ferrous material, the picture is much calmer. Steel scrap and shredded scrap are both flat and stable, giving you more flexibility on timing without sacrificing value.

The overall message is straightforward: protect against further downside on your weaker metals, move material while prices are known, and stay informed before China's markets reopen this week.

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