Ferrous scrap pricing sideways in June

“The increase in steel tariffs could move the market, but it’s too early to predict,” he noted.

Regarding the tariffs, a second source said, “I think the great majority of tons would have traded sideways anyways, but the tariff announcement did help to push one or two mills into the sideways camp.”   

“I do not see any movement one way or the other in July unless we see better demand for steel,” the second source added.

Note that SMU reported on the sideways market last week but reached out to additional sources to confirm pricing data.

SMU’s June scrap pricing stands at:

• Busheling at $410-440 per gross ton (gt), averaging $425/gt, even with May.
• Shredded at $370-390/gt, averaging $380/gt, unchanged from May.
• HMS at $315-345/gt, averaging $330/gt, level with May.

A third source said the across-the-board sideways move was “a first since last November.” 

“Decent demand in the Ohio Valley helped support prices,” he noted. “Export pricing and demand seem to be topping, though, and a little wobbly.”

He continued that flows into scrapyards “are stymied a bit now after the initial spring flows and two aggressive monthly price drops in April and May.” 

“We will see how long this steel mill demand holds up and whether export pricing drops from early June levels, both of which could impact July pricing,” the third source said.

On the trade landscape, he thinks “these 50% tariffs will shut off a lot of finished and semi-finished imports to the US.”

Summing up, he said, if demand can stay “even relatively decent,” that should be to the benefit of the domestic mills.