Scrap metal market takes a slight step back from 2018 high as more metal tariffs go into effect and we look to finish the year with stronger prices than recent history.
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Scrap metal prices have fallen slightly coming off a high for 2018 last month that matched the recent hot summer temperatures. While prices throughout July and into August were still very strong, there may be potential concerns for softer prices coming up due to China and their recent tariffs but we will circle back to that later. The national average price per ton for crushed autobodies fell 1.5% vs last month to a mark just above $212. Compared to 2017, the price of scrap steel is greater than 23% higher during the same month, which would be the largest year over year change so far in 2018.
At this point we are two-thirds of the way through the year and in recent history the final four months of the year have been a challenge for scrap steel. Over the last 5 years there has been an average decline upwards of 14%. However, last year it was just a 4% drop so we may be at the beginning of a new trend.