Category: Raw Materials

Global scrap prices increased in Asia and the US in October, although we believe downside risks remain for prices in the short term, particularly outside the US market.

The price spread between hot-rolled coil (HRC) and prime scrap narrowed marginally in October, according to SMU’s most recent pricing data.

Scrap prices ticked up in October outside of Chicago and Detroit, scrap sources told SMU.

Last week, US mills entered the scrap market, albeit later in the month than usual. Now we know why. They were trying to buy sideways (whatever that means anymore).

Iron ore prices spiked as the Chinese market reopened after the country’s seven day holiday, but the rally started to lose steam on Tuesday afternoon.

George Adams said he feels fortunate to be able to work with his kids at SA Recycling, the company his family founded. But that’s not the case with many family-owned businesses.

The US scrap market has been in a steady decline for the first nine months of this year. As we enter Q4, there seems to be scant hope things will change in October. However, some players are seeing a bit of light after this month, depending on steelmaker appetite for scrap.

We are pleased to share this CRU analysis of the North American zinc market with SMU subscribers.

Last week, iron ore prices dropped below $90 per dry metric ton (dmt) for the second time in the past two years. However, prices rebounded strongly today and ended the week at $93.5/dmt, driven by the stimulus announcement in China.

Gerdau Long Steel North America plans to acquire Dale’s Recycling Partnership, a Tennessee-based operator and processor of ferrous scrap.

SMU is pleased to share the latest news from the global pig iron markets from our sister publication, Recycled Metals Update.

The price spread between hot-rolled coil (HRC) and prime scrap widened again in September, according to SMU’s most recent pricing data.

September scrap prices came in a soft sideways, with only mild hopes for a higher October, market sources said.  

Industrial recycler PADNOS announced its acquisition of three scrap operations in the Midwest.

Great Lakes-area mills have entered the September ferrous scrap market in a surprisingly prompt manner.

“It's been a very interesting year in that the price of scrap should have gone down earlier this year."

With a surplus of ferrous scrap supply in the US, Steel Dynamics Inc. (SDI) said one key to maintaining costs is watching the price of conversion. When it comes to feeding electric arc furnaces (EAF), “Our Omni team is working very closely with us to make sure we have access to the right materials,” said […]

The basic pig iron (BPI) market remains virtually unchanged despite perceived weakness in other ferrous materials, such as scrap, billets, HRC and iron ore.

The price spread between hot-rolled (HR) coil and prime scrap widened slightly in August but remains in territory not seen since late 2022, according to SMU’s most recent pricing data.

US scrap prices picked up in August, though near-term demand is expected to remain weak, scrap sources told SMU.

The US ferrous scrap market has essentially traded sideways for August. It may be too early to judge how much traction these prices will have with the trade.

It’s buy week again for ferrous scrap. US steelmakers are expected to offer their prices for August shipment this week. Most of the dealers and brokers RMU has quizzed believe the market has enough traction to hold sideways and even go up.

RMU contacted ferrous market players in both the Southeastern region and the Midwest regions about the direction of the ferrous scrap market for August. One executive in the Great Lakes district confirmed the flow of shredder feed and obsolescent scrap did not change in July. All his orders for shredded scrap have been delivering to the mills without issue. He thinks shredded scrap can trade sideways from July in the Midwest.

The prices for the July market weren’t settled until July 8 and now we are approaching the formation of the August market.

Operating income from Steel Dynamics Inc.’s (SDI) recycling operations clocked in higher in the second quarter than in the first on increasing volumes and despite lower realized pricing. Recycling operations brought in $32.1 million, an increase over $22.6 million in Q1, but lower than the $40.3 million last year, the Fort Wayne, Ind.-based company said […]

The spread between hot-rolled coil (HRC) and prime scrap prices  narrowed for the third consecutive month, hitting a level not seen since 2020, according to SMU’s most recent pricing data.

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

The ferrous scrap export market on the Atlantic and Gulf Coasts of North America has maintained its pricing for several months despite continuing declines in domestic markets.

North America has one of the most robust steel scrap markets in the world. The continent has a long history of steel production, significant imports of steel and steel-containing products, and mature steel consumption. Due to this, the reservoir of scrap available to be recycled each year in the US and other North American markets is substantial and growing.

After celebrating the July 4th holiday, let’s have a look back at the first half of 2024.