Ferrous Scrap Prices Bottomed in June – Sideways to Up $20 in July (maybe...)

Our ferrous scrap sources are advising Steel Market Update that June saw the bottom to scrap prices and July will see prices move sideways (no change) to as much as up $20 per gross ton. If scrap prices do indeed rise by as much as $20 per ton, this could be important for steel buyers as the domestic steel mills would become more inclined to dig their heals on flat rolled steel pricing.

One dealer provided SMU with the following color on the market, “We put in a firm bottom in June.  Some people are now saying the market will be higher by $10-$20/GT, others are saying sideways to up a little.  Export isn’t a big factor either way.  Domestic mill demand, which seems pretty solid, will drive the degree of any price increase.”