August Expected to be the Low Price Point for Ferrous Scrap Prices

Initial reports coming out of the financial community are suggesting ferrous scrap prices could be down $5 to $15 per ton once the August negotiations between the steel mills and their suppliers get under way. The expectation that the prime grades will be hit after spending a couple of months moving sideways.

However, not all of the scrap dealers are in agreement about the direction of scrap prices as one dealer told us, “I am curious what reports you are reading?  I do not think there is a clear consensus to the Aug market. The latest prices into Turkey are rising with US exporters now offering HMS at $235.  If accepted this will be up $20 from a month ago. At this level scrap will not move domestic from the coast making it very difficult for domestic mills to drop prices on shred and cuts. It remains to be seen if imported prime scrap and scrap alternatives such as pig iron have or will take the edge off the domestic prime market.  Consumers talking that market down but many feel demand is still too strong to drop prices. And finally most believe August is the bottom of the 2016 market.”