The Trade – Episode #14 with Brett and Chad | February 5th, 2026

The Trade | The Trade Transcription

On this episode of The Trade - A Scrap Life, Brett is joined by Chad to analyze the February 2026 scrap metal market, highlighting copper as a potential "trade of the year" and discussing how small businesses can navigate current market volatility. This episode explores the impact of macroeconomic trends, such as GDP growth and energy costs, on ferrous and non-ferrous positioning to help operators maximize their margins. Produced by Recycled Media.

Transcription

## A Scrap Life Podcast

### Introduction

**Host (Brett Ehart):**
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. February 2026 is upon us. The trade, the fairest trade, to be exact. I’m sitting here with Chad, and man, we were just talking about all kinds of stuff. More importantly, we’re finally getting a little bit of love again. Maybe February pricing looks a little more positive than it did in January.

**Chad:**
These are the meetings I like. I’m used to them when it’s like, oh, I’m getting my ass kicked again by 10, 20 bucks, but this one, I might be able to recover some skin.

### Market Analysis

**Brett Ehart:**
Got a lot of points here and many are bullish. A lot of volatility in the market since the last time we talked.

**Chad:**
I was talking to Aldo about the copper markets. That roller coaster has just been wild, right? The PGM roller coaster has been wild. Ferris is kind of like when you ride the crazy roller coaster that loops, and it takes you up and sets you down. It’s a good switch-up.

**Brett Ehart:**
After riding that crazy roller coaster of copper and aluminum and the PGMs in January, hopefully, I’ll sit on the swings a little bit with the Ferris market. What are we talking about?

### Copper and Aluminum Markets

**Chad:**
Let’s start with copper. I listened to the Allin Podcast where Chimoth Papatia was saying the trade of the year 2026 isn’t a stock; it’s copper. I dove, well, I had AI dive into a lot of the analysis from banks and private equity groups. Conservatively, they mention $7 to $7.50 copper is reasonable for 2026.

**Brett Ehart:**
If we get to $7 or $7.50 copper, that might only equal a $6.80 sale, right?

**Chad:**
Yeah, the premium depends on what that looks like. I think for 2026, we could see some pops, and this could be a way to add additional margin out of all the positions you could take in our business.

**Brett Ehart:**
Aluminum had quite a run in January but is now back to the beginning of January levels or lower. With the 232 tariffs in place, aluminum is buoyant. If tariffs are removed, that changes aluminum significantly.

**Chad:**
Nickel follows a similar trend, experiencing a significant run through January and declining in February. Volatility in these markets is noticeable, and this will be a hard thing to position, but if you can stomach it, there are opportunities.

### Macro-Economic Insights

**Brett Ehart:**
That’s why it’s important to listen to podcasts like this and read articles to understand the macro. If you don’t understand the global situation, you might be trading blind.

**Chad:**
It’s speed that gives small to medium-sized businesses an advantage. They can take positions and calculate risks in ways bigger companies can’t.

### Conclusion

**Brett Ehart:**
I love it. Talking about some strong GDP numbers, we’re even seeing oil getting some love over the last 30 days. The trend is your friend.

**Chad:**
It’s always good to discuss this with you, Brett. Until March, go out there, get your material bought and sold, make sure your sale is what it should be. Thanks for the conversation, Brett.

**Brett Ehart:**
Good talking to you too, Chad.