Scrap Poised to Move Higher Again in May

It is still a little early to get a solid read on the ferrous scrap market and May pricing, but the indicators are pointing toward higher pricing. We heard from a number of our scrap sources over the past 24 hours and their guidance has been toward the scrap markets moving anywhere from $10 to $30 per gross ton once May negotiations get under way.

There are two main issues driving scrap prices at this time.  First, Turkey is paying more for scrap coming off the east coast. We were told this morning that the latest numbers to Turkey were $290 per metric ton which is $5-$10 higher than just a day ago. The second issue is supply of available scrap due to slow flows into the scrap yards. This is changing as buy prices move higher but it will take a couple of months to truly have an impact to such a degree that supply overtakes demand thus putting downward pressure on pricing.