SMU Expectations for Ferrous Scrap Pricing for July

We purposely did not begin this article on where our sources are seeing ferrous scrap prices with an attention grabbing headline as we think readers would be confused. The confusion comes from the pressure the domestic steel mills are expected to put on obsolete grades, like shredded scrap and HMS (heavy melt scrap). Those of you associated with the long products industry are impacted by lower obsolete grade pricing.

For those of you associated with the flat rolled or sheet industry, the key product there is prime or prompt scrap (bundles and busheling) which are used by mills like Nucor and SDI in their sheet mills. Prices on prime grades are expected to continue to move sideways as demand is strong and supply is expected to weaken as the automotive companies take downtime for summer vacations and retooling.