Ferrous Scrap Prices Forecast to Drop $10-$30

As we approach the end of January the expectation is for the domestic steel mills to cancel any remaining ferrous scrap orders that the yards have been unable to ship due to the weather, shortage of trucks or rail cars or just due to the dealer(s) being unable to complete the order on time. The steel mills expect ferrous scrap prices to drop by as much as $30 per gross ton.

Flows of scrap into the dealers yards have been less than anticipated. This has created a situation where mills may not get all of the scrap they purchased for this month. Mills have a decision to make – cancel orders when they may be short of scrap to run their mills – or allow the yards to ship much higher priced scrap since the market is projected to move lower.