US scrap metal prices rose for the second straight month in January, according to the latest Institute of Supply Management data.
The prices for certain aluminum products also rose for the second consecutive month, while hot rolled steel and cold rolled steel prices increased for the third straight month. Prices for fabricated metals also increased in January because supply tightened, according to the ISM data.
The price increases reflected growth in the manufacturing sector, which expanded by 3.1 percentage points to 50.9pc in January 2020, after contracting five straight months.
Primary metal demand also increased in January and was among the commodities that grew ISM’s new order index to 52pc after declining the last five months.
Fabricated metals, machinery, and miscellaneous manufacturing were also among the 10 growth categories that pushed the index up. However, transportation equipment was among five industries that reported decreases in new orders in January.
Fabricated metals was among seven industries that saw production growth last month. ISM’s production index grew to 54.3pc—the best reading it’s had since April 2019, according to Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee.