**Welcome to A Scrap Life Podcast**

**Host: Brett Eart**
Welcome to A Scrap Life, a podcast solely focused on the hustlers, grinders, operators, and business owners who live and breathe the scrap metal industry every day.

**Introduction of Guest – Aldo Jordan**
All right, everybody. The first trade podcast for 2026 when it comes to copper. I’ve got a guy that you should know if you listen to this podcast. His name is Aldo Jordan and he is the owner of Metals Agency, and he trades a fair amount of copper. So, I figured if we’re going to do this thing right and we’re going to do it justice once a month, let’s get someone in here that’s smarter than me and knows the market and let’s talk copper. Man, how you doing? I see you wearing the Chicago Bears hat. You guys got a W this weekend.

**Guest: Aldo Jordan**
We got it done and we’ll take the odds going forward. And in Chicago, it feels like we won the Super Bowl. So no matter what happens from now on, we really don’t care. We beat the Packers.

**Discussion on Copper Market**

**Brett Eart**
There’s a lot of rivalry with the Packers there, huh?

**Aldo Jordan**
Not hatred, but I think we’re having a pretty good year. We’re gonna celebrate it every day. Why not?

**Brett Eart**
Yes. As you should. So, speaking of big wins, Copper going past $6 is quite something. I mean, would it hit 609, 610 or something at one point last week or the week before? It’s crazy. What’s going on out there? What’s pushing copper all over the map?

**Aldo Jordan**
Well, just to frame it right—copper in 2025 had an average of roughly 480 for the year and even today’s average, although we’re only a few days in, is around $5.80, meaning we’re up 26% compared to last year. To your point, on January 6, we had an intraday high of $69, but essentially took it all away the next day.

**Brett Eart**
Easy come, easy go, right?

**Aldo Jordan**
Yes, easy come, easy go. We were at 580 the next day. A lot of the drivers include financial speculation, which still holds significant sway, and news about mine strikes—which tend to resolve themselves quickly. Financial institutions are trading a majority of the comex contracts without taking physical possession.

**Brett Eart**
Is this similar to what happened with silver contracts? People had to come up with physical inventory, causing price spikes due to limited availability.

**Aldo Jordan**
Yes, there’s a lot of speculation involved. It’s not all speculation-driven, but certainly, the vast majority is. Overhang on Kato in the U.S. has been ongoing since July/August last year but isn’t major news now. Financial institutions, heavily involved in trades, move the market significantly, creating opportunities for arbitrage but also challenges in market stability.

**Considerations for Traders and Consumers**

**Brett Eart**
How have spreads adjusted on your end, like for number one copper, number two copper, and bright wire?

**Aldo Jordan**
Like you said, for all intents and purposes, the arbitrage is almost zero. Most LME traders take possession of physical copper from given warehouses, but there’s still differences based on the dollar’s value. Spreads definitely widened, especially with consumers adjusting from commercial and hedging standpoints.

**Brett Eart**
Was it difficult to place material last week?

**Aldo Jordan**
Yes, absolutely. Placing copper was tough. People struggled to find a liquidity baseline. Spreads were literally all over the place.

**Brett Eart**
What kind of pricing should traders expect?

**Aldo Jordan**
It ranges significantly. Last week, prices varied greatly, with number one copper ranging perhaps 40-50 cents under typical rates. Number two copper spread fluctuated significantly, reflecting challenges in material placement.

**Strategies and Final Thoughts**

**Brett Eart**
Are more businesses starting to hedge with the rising prices?

**Aldo Jordan**
Yes, but currently, less than 20% of companies have a hedgebook which is crucial for trades involving significant volumes due to its impact on cash flows.

**Brett Eart**
Would you advise small to medium-sized companies to start hedging?

**Aldo Jordan**
For smaller volumes, hedging might not be necessary, but for larger operations with substantial monthly trades, it’s worth evaluating potential benefits against the costs of maintaining a hedgebook.

**Conclusion**

**Brett Eart**
Any parting advice on navigating the copper market?

**Aldo Jordan**
Buy and sell as quickly as you can. We live by fundamentals—move inventory promptly, maintain quality, and stay with trustworthy consumers. Financial swings will likely continue, so being prepared is essential. If lofty copper market predictions pan out, we’ll need to maintain vigilant and strategic positioning. Appreciate your time, Aldo.

**Aldo Jordan**
Thank you, Brett. Happy to help. Reach out if you need support in logistics or moving materials. Take care.

**Brett Eart**
Take care.