Ferrous Scrap

Scrap tags move sideways in July, bottom reached?

July 15, 2024

Ferrous scrap prices came in mostly sideways in July, with prime scrap prices edging down and shredded and HMS tags ticking up, scrap sources told SMU. They believe a bottom has been reached in the market.

SMU’s July scrap pricing stands at:

Busheling at $370-380/gross ton (gt), averaging $375, down $5 from June.
Shredded at $370-385/gt, averaging $377.50, up $2.50 from June.
HMS at $300-330/gt, averaging $310, up $5 from June.

One source noted, “I am hearing some mills could not buy all the busheling they needed and are now bidding numbers that begin with a ‘4’ (bids at $400-405/gt delivered into Ohio).”

A second source agreed: “Some mills may have needed to increase busheling to cover their needs.”

He said that there may be some variations in prices in other districts, but in Detroit and Chicago the prices are: Busheling at $380/gt and shredded at $385/gt.

Looking nationally, a third source said, “Prices for all grades traded sideways in July as most participants believe July prices will be the lowest they will see for the balance of the year.”

The first source also said the market has clearly bottomed, commenting, “Best guess moving forward is sideways to strong sideways.”

He added: “I suspect that the finished market is done going down for now, so that could stimulate demand in the US and help push scrap prices a little higher over the next 60 days.”

The second source also believes the market has reached bottom “after mills tried to buy busheling down then discovered they could not even buy it sideways.”

“The market for industrial scrap will rise in August, especially with the automotive sector taking vacations and retooling for the 2025 model year,” he continued.

The first source said global supply is clearly less than it has been. “And while I don’t see export prices exploding higher, I see them relatively bound in the current range for a while,” he added.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.