Scrap Prices Moving Higher

It was only a few weeks ago that many within the ferrous scrap community felt when the negotiations were over for the month of March and the smoke cleared scrap prices would be essentially unchanged from February. That was then, this is now.

One of the larger players in the market told us earlier today, “There has been business transacted in the Midwest markets at up $10/gross ton in the Chicago area.  However, that market was lagging the NE and SE markets by the $10-15/gt so it’s not yet clear whether they’ll move higher as well.  Nothing to report on transactions in this region.  The lingering question remains what happens with the East Coast export tons.  Those volumes have been augmenting the shortage of domestic obsolete scrap.  If that material stays home, the up $10 will likely stick.  Otherwise, the market could continue to firm into April given current demand dynamics.  As we’ve discussed, I get the sense that a decent share of the idled BOF production has been captured by the EAFs which is driving demand for scrap.”