October Scrap Forecast to be Down $10 Per Gross Ton

This week the domestic steel mills and their scrap suppliers will be locked in negotiations to determine the price of ferrous scrap used in the EAF’s and BOF’s to make steel. Steel Market Update sources have been advising that the October scrap market looks to be down $10 per gross ton before firming later in the month.

The reasons for the drop in scrap pricing is due to an expected decline in purchases due to maintenance schedules and production downtime at several mills. This includes the blast furnace taken down at ArcelorMittal Cleveland and reduction in scrap purchases at Nucor Berkeley and one or two other Nucor facilities due to maintenance and expansion projects. The U.S. has also seen a slowdown in exports of scrap off the east coast.