Ferrous Scrap
RMU: Mills enter June scrap market sharply lower on steel demand concerns
Written by Stephen Miller
June 6, 2024
The suspense about the drop in ferrous scrap pricing for June has ended with Delta, Ohio-based North Star BlueScope entering the market at significantly lower numbers than most predicted.
- 1 Busheling: $375 per gross ton (gt), down $40/gt
- Shredded: $375/gt down $20/gt
- Plate & Structural: $340/gt down $30/gt
These prices are on the weaker side of various predictions, most of which pegged prices to be down $10/gt-$20/gt.
It seems the lack of demand due to outages and poor steel sales took a hit on prices.
The fact that shredded (with a 94% Fe yield) is trading at the same price as busheling (97% Fe yield) is a sign of weakness in the steelmaking sector, residual alloys notwithstanding.
Other buyers are likely to follow suit with further declines expected for prime grades. There is no evidence of dealer resistance as yet.
Editor’s note: This article appeared first in Recycled Metals Update (RMU), SMU’s new sister publication. RMU is devoted entirely to the ferrous and nonferrous scrap markets. If you’d like to learn more, visit RMU’s homepage and take out a free, 30-day trial.
Stephen Miller
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