August Ferrous Scrap Prices Expected to Tread Sidways to Up $10

The domestic steel mills are not canceling any remaining open July scrap orders which is an indication that the mills are busy, need the scrap and do not anticipate being able to buy scrap for less money in August than they did in July. SMU scrap sources are telling us demand is good and supply continues to be decent. The combination of both points toward a “strong sideways to up” ferrous scrap market as we head into August scrap pricing negotiations between the domestic mills and the scrap dealers.

A large national scrap company told us, “Generally speaking, the market appears to be quite firm heading into August as mill operating rates and finished steel selling prices continue to improve.” This same source felt scrap prices would be up $10-$15 per gross ton in August. This company also felt negotiations would drag out as there is a “disparity between buyer and seller expectations.”