Ferrous Scrap
Prices set to rally in August amid tight supply, rising demand
Written by Stephen Miller
July 26, 2024
The prices for the July market weren’t settled until July 8 and now we are approaching the formation of the August market.
In July, most prices were reported as sideways despite mills in the Great Lakes region attempting to buy down. When this didn’t work, mills relented and bought sideways except for #1 Busheling. Dealers resisted sideways, claiming lack of material. They also witnessed failed attempts to buy at $20 less than June prices. So, many of them did receive a $20-per-gross-ton (gt) increase over June prices.
The trade is of the opinion there is not that much scrap being generated at this point. There will be no increase in the supply of scrap going into August regardless of the grade. In fact, industrial scrap generation appears to be slipping. The flow of shredder feed is not going to increase. Prices for all these grades decreased over the last several months due to meager demand by the mills. However, the general feeling is that demand will improve, and prices will have to move up in August.
RMU spoke to a broker in the Ohio Valley area about his views on the August market. He said, “dealers are expecting a $20/gt increase across the board.” He added prime grades could be up more, citing the dearth in industrial scrap supply.
Other factors which could affect the August market:
- Export prices are holding steady and have increased slightly recently.
- Pig iron offers from Brazil have increased by $5-10 per metric ton (mt) to $480/mt CFR.
- Increase in demolition scrap may relieve some localized pressure on the scrap markets.
- It is anticipated that steel service centers should start buying more material as HRC nears a bottom.
With these factors in play, the August market is poised for potential price increases, and all eyes will be on how these dynamics unfold in the coming weeks.
Stephen Miller
Read more from Stephen MillerLatest in Ferrous Scrap
Ferrous scrap tags rise amid short supply, tariff volatility
Ferrous scrap prices rose across the board in March as the market adapted to short supply and the volatile tariff situation, sources told SMU.
Toyota Tsusho America to acquire Radius Recycling for $1.34 billion
The companies said Thursday that Radius shareholders will receive $30 per share in cash upon the deal’s closing, which is expected in the second half of this year.
March scrap market starts to shape up
After an unusually long period of waiting for the March scrap market settlements, several mills are now actively buying ferrous scrap. And it looks like prices are ticking up.
Miller on Scrap: Export prices starting to play catch up
Domestic shredded scrap has experienced a renaissance in pricing since January. And that increase had caused traditional exporters to ship their material to domestic users instead of overseas. But with recent changes, this cycle may end with the resurgence of export demand and continued foreign exchange fluctuations.
Ferrous scrap markets react to tariff reprieves
The situation on ferrous scrap has cleared up with the pause of the implementation of Canadian and Mexican blanket tariffs.