Miller on scrap: March market recap

The ferrous scrap market experienced a sharp decline for March shipments. Prime scrap fell $60-70 per gross ton (gt) while shredded and other obsolete grades declined $40-50/gt. It seems these prices were accepted in the trade by dealers across the continent.

There was little room for debate regarding the prices this time around, as all signs pointed towards a market decline. The HRC prices had dropped to the extent that steelmakers are contemplating establishing a price floor, regardless of its economic justification. The scrap export markets to Turkey and to the Far East/South Asia have plummeted sharply. Basic pig iron prices have also backed off. With the worldwide steel industry showing lackluster performance lately, a large drop in scrap pricing was inevitable for March. Unlike the steelmakers, the scrap industry cannot declare price floor.

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40-plus years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.