Exchange

Prices of metals

The dynamics of metal prices are dictated by the market and the exchanges. Many transactions take place in the LME, where quotes reflect the supply/demand balance on a daily basis, economy cycles, energy and logistics costs, currency exchange rates, geopolitics, sanctions and climate policy. Purchase prices follow directly these trends and the pricing used by regional steel plants; therefore, the prices are constantly changing.

It is a complex, interesting and risky business: margins are narrow, storage- and quality-related risks are high, payments to customers are fast, and realisation depends on upcoming prices. Sometimes you have to “buy at a loss” to keep the flow of materials and customers.

The market is global – Baltic scrap metal is actively purchased by Germany, Turkey, Denmark, Sweden and Poland, where large metallurgical companies and shredders operate. For success, it is essential to keep track of the exchange quotes (e.g., Cu, Al, Ni; and steel indices, such as HMS/Shredded) and orders placed by the plants.