Miller on Scrap: Does quiet August signal soft September?

August has been quiet thus far, with scrap suppliers working on completing their current orders as signals of a weaker September start to appear. However, sources say it will not drop very much, though everyone is not on the same page.

Over the last several months, the US market has seen prime grades trade sideways while shredded and HMS have dropped about $10 per gross ton (gt) each month. This price erosion of obsolescent grades of scrap has not materially slowed down the flows into dealers’ yards. However, there is a contingent who believes this cannot continue much longer.