Ferrous Scrap Prices Poised to Drop in October

Market sources are advising Steel Market Update to expect lower ferrous scrap prices in October. We are hearing the expectation by the dealers is for prices to drop anywhere from $15 to $40 per ton with most believing the adjustments will be in the $20 per ton range for obsolete grades and $30 per ton on prime grades (Busheling/bundles).

The expectation of lower scrap prices may be one of the reasons why the domestic mills (mini mills in particular) have been offering lower spot prices into the marketplace.