Ferrous Scrap Prices Set to Rise $10-$30 in June

Based on channel checks with our scrap sources, we are hearing that many of the steel mills have been actively buying as much scrap as possible during the month of May. The extra tonnage being added to the early May tons are being purchased at higher prices. Prices are up as much as $10 to $20 per gross tons on the extra purchases being made.

However, not all of the dealers have extra tons to give for May shipment. “Mill inquiries for June scrap began last week, without much success as dealers work to complete May shipments and assess the markets,” one of the larger dealers told us. “Pricing trends are likely to be disparate and broad-based as geographic and/or inventory factors impact negotiations.  At this stage, we could see scrap pricing higher by $10-30/gt in June and potentially even stronger heading into July as prompt industrial supplies contract.”