Scrap Prices North America
November 10, 2016
Watch Scrap Prices Lead Flat Rolled Prices Higher
Written by John Packard
As we discussed earlier this week, higher international prices for iron ore, coking coal, pig iron and steel are helping take ferrous scrap export prices higher. SMU had lunch with one of our scrap/pig iron experts who advised that 80/20 scrap export prices may have reached $280 per metric ton delivered. At the same time, pig iron prices delivered to NOLA are reported to be very close to $300 per metric ton with Russia being the main supplier as many of the Brazilian operations have closed down. The combination of higher export pricing coupled with improving order books at the U.S. steel mills is helping propel ferrous scrap prices higher.
Pete Myers, Executive Vice President, Metallico provided the following analysis of the ferrous scrap markets to SMU earlier today, “Scrap prices in the US are being driven by international markets. The well publicized increase in iron ore and coking coal prices has triggered greater demand for ferrous scrap worldwide. This demand has translated to higher prices worldwide for ferrous scrap. What is happening today in the US market is a good example of two paradigm shifts the scrap industry is experiencing:
