**Welcome to a Scrap Life Podcast**
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. Here is your host, Brett Eart.
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**Brett Eart:**
What’s going on, everybody? The trade is back. The copper trade specifically with Aldo Jordan from the Metals Agency. What’s going on, Aldo? You just said something that was the funniest to me that I’ve heard all week, and it’s only Wednesday. Please repeat it for our audience. It’s nothing to do with copper, but if you have kids and you have a business, you’ll appreciate this one.
**Aldo Jordan:**
We were talking about family and kids, and I said, “It’s amazing that my wife tells me I can manage to move thousands of pounds of copper from the middle of nowhere to Hamburg, Germany safely, but I cannot get my 12-year-old to show up to school on time.”
**Brett Eart:**
So for those of you who think that all we do is sit around and try and solve scrap problems, you’re sadly mistaken. We are trying to solve life problems as well. And I think our problems are probably very similar to a lot of other people’s out there across the world, not just the United States or Germany for that matter. We’re trying to figure out how to get our kids to school on time sometimes.
**Aldo Jordan:**
Absolutely.
**Brett Eart:**
Well, you said it best. We picked the days to have these podcasts in the copper market, and what a wild ride this has been since last month, right? Last month we thought, “Copper’s up,” and then all of a sudden, January the roller coaster was in full effect, and it looks like February, nothing’s changing. It’s still in full effect. So what do you think, man? What’s going on in the world with the copper market?
**Aldo Jordan:**
I think a lot of the equity plays we’ve been seeing on the stock markets, precious metals have given copper these nipples. We continue to see a lot of money pour in day in and day out very quickly into COMEX and now LME as well. We’ve seen quite a volatile trading period. We’ve had 22 trading days so far and we’re split equally between rising and down markets with 9.5% changes between Tuesday and Friday of last week.
**Brett Eart:**
I’m going to be honest, a lot of this run-up in the copper market, I missed. I say missed because I sold into it. I never got the $6 sale on Copper Chops. I was always in the 580s, but every time I thought I hit a good price, it went up 10 or 20 cents more. The other day I woke up and copper was at 650 on the May prices. I finally caught one. Seeing 650 was crazy when I logged into my phone in the morning.
**Aldo Jordan:**
These 9% swings make a wild ride. When you’re talking about numbers like $6, those are significant swings.
**Brett Eart:**
How does someone even buy scrap in that market? What advice would you give someone trying to navigate that?
**Aldo Jordan:**
I would buy against my current sales and not speculate too much. Quite frankly, nobody knows. If we can keep it simple and hedge against known sales, it reduces the risk.
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**Brett Eart:**
Speaking of global demand, China once dominated in copper demand. Have you noticed any changes?
**Aldo Jordan:**
China is still a big consumer but the amount of consumption is changing. They are transitioning from an industrial to a consumer-based economy. The consumer side is weak, so they are consuming less scrap than in the past.
**Brett Eart:**
Are they consuming less from the US specifically?
**Aldo Jordan:**
Less from the US and globally. They’ve invested in their recycling industry which is maturing. Plus, they have strategic reserves that help them reduce dependency on imports.
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**Brett Eart:**
What about the precious metals sector, PGMs, gold, silver? How are they affecting base metals?
**Aldo Jordan:**
It’s financial speculation that creates market mush. There’s no real reason for such huge swings. The volatility is driven by financial players, not physical traders or miners who have long-term plans.
**Brett Eart:**
Looking ahead, what’s your forecast for the next three to six months?
**Aldo Jordan:**
It’s going to be bumpy with potential issues from trade agreements and tariffs. If tariffs change, the market could shift significantly. I see the year being rocky overall.
**Brett Eart:**
What challenges are your customers facing?
**Aldo Jordan:**
Liquidity in the market is an issue. Demand is weak, especially in Europe. Credit lines are strained due to rising costs of scrap.
**Brett Eart:**
For our listeners, ensure your insurance matches your load value. As values have changed significantly, check coverage levels for safety.
**Aldo Jordan:**
Exactly, make sure you are insured against today’s scrap values as they’ve risen dramatically. It’s crucial for financial security.
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**Brett Eart:**
Thank you, Aldo! If anyone needs help with materials or advice, reach out to Aldo and the Metals Agency. Appreciate your insight today, and looking forward to our next discussion. And good luck getting your kids to school on time!
**Aldo Jordan:**
Yes, thanks!