The Trade – Episode #24 with Brett and Chad | July Ferrous Edition

The Trade | The Trade Transcription

In this July edition of The Trade, Brett and Chad discuss the sluggish July 2026 ferrous trade and historically low steel inventory levels. This episode explores how tariffs and domestic demand are keeping the U.S. market bullish even as the rest of the world faces economic weakness. Produced by Recycled Media.

Transcription

**Welcome to A Scrap Life Podcast**

*Host: Brett Echart*

**Introduction:**

Brett Echart: As you guys know, I don’t usually have a sponsor on this podcast, but today, things have changed. I’ve invested in a new technology called Nikki. It’s a game-changer for small and medium-sized scrap companies like ours. Nikki is essentially the last receptionist your scrapyard will ever need. I was tired of our company missing opportunities on our phone lines due to overwhelmed scale operators. Nikki answers calls, directs them to buyers, and provides answers to basic questions. More importantly, it logs daily data for follow-ups, tracking, and call details. Stay tuned for more details.

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**Discussion on the Scrap Industry:**

Brett Echart: What’s going on everybody? It’s July of 2026, the trade with Chad Eller Brock is here. It’s been a slow rollout for the Ferris trade this month. I don’t know why exactly, but I have a guest who might help explain it — Chad Eller Brock, welcome!

Chad Eller Brock: Thanks, Brett. The steel mills are delaying, and this isn’t positive news for everyone, especially with contracts being canceled last month. But I don’t think the market is going to get crushed. There’s still demand, particularly in the Northwest, but July isn’t looking like an up month.

Brett Echart: Yeah, despite the slow market, there are some bullish points. The demand seems strong in various sectors, and there’s still a healthy demand for scrap metal.

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**Key Metrics and Trends:**

Chad Eller Brock: Days of supply is a key metric, currently at 33.9 days. Anything under 35 days usually suggests a double ordering or panic buying mode. This is the lowest level since 2021. Inventory levels are also the lowest since 2009, meaning there’s minimal cushion and availability is tight.

Brett Echart: It seems everyone is in waiting mode, hoping for the situation to improve. However, the inventory keeps going down, and it feels like we’re operating on a tightrope.

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**Regional Insights and International Factors:**

Chad Eller Brock: The US steel mills are doing well, especially because of tariffs. Turkish pig iron, other imports, and internal inventory levels are significant contributors to this situation.

Brett Echart: This seems to benefit the domestic steel mills in the US, with increased demand for infrastructure and commercial construction, among other factors.

Chad Eller Brock: Absolutely, and while inventory on new steel supply remains low, there’s confidence that demand will continue to drive pricing, especially with the tariffs playing a crucial role.

**Conclusion:**

Brett Echart: Thanks for all the insights, Chad. Stay tuned, everyone. You can find Chad’s charts and more detailed analysis on his LinkedIn. We’ll be back with more updates in August. Thanks again, Chad, for sharing your knowledge. Hope everyone has a productive month, even with the current delays. Take care!