October Scrap Settles Down $50-$60

As we headed into October negotiations, the ferrous scrap dealers knew prices would be down anywhere from $20 to $50 per ton. As negotiations got into full swing it was apparent the lower end of the range was nowhere near $20 as prices quickly collapsed by $50 per gross ton.

The issues have been the high value of the U.S. dollar, excess mill inventories, softening steel prices, lack of scrap exports, Chinese billet being sold at low levels which influences export prices (as scrap competes with billet into Turkey) and the traditional destocking of both scrap and steel going into 4th Quarter.