May scrap looks bright amid tight market conditions

As the Recycled Materials Association (ReMA) wraps up its national convention in Las Vegas, the ferrous trade is feeling good about May. This is not uncommon after a convention where participants meet with colleagues and talk up the market. However, this year it may be more than wishful talk.

There are several factors buttressing the ferrous scrap market against it seasonal fall in the spring months. We all know about the Iran War and the rise in fuel costs. Other factors include strong steelmaking activity, rising steel prices, lighter inbound scrap flows, and firm export markets. In addition, prices for scrap substitutes like pig iron and hot-briquetted iron (HBI) are also elevated, and supplies are short.