Scrap Metal Market Update: Precious Metals Slide While Steel Holds Steady

Scrap Metal Market Update — October 19, 2026

The scrap metal market is sending mixed signals heading into the final stretch of October. Precious metals have taken a beating over the past 30 days, base metals are mostly softer, and steel is sitting tight — waiting for a reason to move in either direction. Here's what scrap yard operators and industrial sellers need to know right now.

Precious Metals: A Rough Month, But Daily Momentum Is Firming

It has been a difficult 30 days for precious metals across the board, and the numbers don't sugarcoat it. Silver is the biggest loser of the group, down 13.2% to $57.43/oz, with elevated volatility and negative short-term momentum making it the most unpredictable metal in the complex right now. Palladium has dropped 14.1% to $1,111/oz, though recent momentum has shown early signs of stabilizing. Platinum is off 9.3% at $1,636/oz, and even gold — typically the steadiest of the precious metals — has slipped 4.4% over the past month to $4,160.90/oz.

The one bright spot in the precious metals space is rhodium, which is up 1.1% at $9,100/oz and holding a relatively tight range. It's not a dramatic gain, but in this environment, flat-to-slightly-higher is a win.

That said, there was a more encouraging note in live trading today. Gold firmed modestly, and silver, platinum, and palladium all posted small daily gains. Softer oil prices are helping ease pressure on interest rate expectations, which tends to be a tailwind for gold. Whether this marks a genuine turning point or just a one-day bounce remains to be seen — all eyes are on next week's Federal Reserve decision.

Base Metals: Copper and Aluminum Feel the Pressure

Copper is down 3.6% over 30 days to $6.55/lb, with weak recent momentum adding to the cautious outlook. Two near-term headwinds are worth noting: LME copper warehouse inventories hit a two-month high of 147,450 tonnes after a single-day inflow of more than 8,200 tonnes, and a strike at Chile's major Centinela mine has now ended — removing a supply disruption that had been propping up prices.

Longer term, the picture for copper is more nuanced. Concentrate markets remain tight, and treatment charges are very low, which signals that smelters are still competing hard for raw material. Supply relief today doesn't erase structural concerns further out.

Aluminum is off 8.0% to $1.36/lb, while nickel and zinc have dropped 5.5% and 6.8%, respectively. Lead is nearly flat, down just 0.8%. China's industrial activity is showing some improvement, but continued weakness in its property sector is capping demand for construction-linked metals like aluminum and zinc.

Steel and Shredded Scrap: Holding the Line

Steel benchmark prices are essentially unchanged, with heavy melt scrap flat at $366/mt and shredded scrap unchanged at $413/mt. Mills and buyers appear to be in a holding pattern — neither side has enough conviction to push prices meaningfully higher or lower. Clearer demand signals, likely driven by Fed policy direction and Chinese industrial data, will probably be needed before steel moves with any conviction.

What's Driving the Market

• The Fed and the US dollar: Next week's Federal Reserve meeting is the single biggest near-term event risk. A strong dollar keeps pressure on dollar-denominated metal prices, while any dovish tilt could provide relief.
• Copper supply picture shifting: Rising LME inventories and the end of the Centinela strike have reduced immediate shortage concerns, but tight concentrate markets suggest the longer-term supply story hasn't changed.
• China's uneven recovery: Better industrial activity is a positive, but the property sector drag continues to limit upside for metals tied to construction and infrastructure.
• Oil supporting gold: Lower oil prices are feeding through to rate expectations, giving gold some modest support in the near term.

Key Takeaways

• Precious metals are down sharply over 30 days, but showed modest daily gains today — watch the Fed decision closely.
• Silver and palladium have had the steepest monthly declines; sellers with these materials should consider acting sooner rather than later.
• Rhodium is the only precious metal with a positive 30-day trend, currently holding near $9,100/oz.
• Copper faces near-term headwinds from rising inventories and resolved mine strike, despite longer-term supply tightness.
• Steel and shredded scrap prices are stable — this is a wait-and-see moment for ferrous material.
• Base metals broadly are softer, with aluminum, nickel, and zinc all posting meaningful monthly declines.

What This Means for Scrap Sellers

If you're sitting on silver, platinum, or palladium inventory, the monthly trend is working against you. These metals are in a clear downtrend over the past 30 days, and while today's small daily gains are encouraging, there's no confirmed reversal in place. Delaying high-value precious metal lots carries real risk in this environment. Getting competitive bids in front of qualified buyers now — rather than hoping for a recovery that may not materialize before the Fed meeting — is the more defensible strategy.

For ferrous and shredded scrap, the stable pricing environment actually creates a reasonable window. You won't be selling into a falling market, and if demand signals improve post-Fed, prices could firm. Listing now means you're positioned to capture any upside without the risk of a sudden move lower catching you off guard.

Base metal holders — particularly aluminum and copper — should weigh current prices against their cost basis carefully. Near-term momentum is weak, and without a clear catalyst, a sustained bounce isn't guaranteed.

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