Ferrous Scrap Prices for May Expected to Trade Sideways

SMU sources are expecting scrap prices to remain somewhat range-bound as the scrap dealers begin negotiations with the domestic steel mills for the month of May. Most dealers are forecasting May settlement prices to be within $10 per ton of what we saw in April and this can vary from region to region.

We understand from multiple sources that Nucor and perhaps other EAF mills have ordered a number of foreign scrap cargos of prime scrap (busheling/bundles) which will help reduce pressure on prime scrap availability. “Despite good domestic demand, Nucor and other are expecting arrival of several prime scrap cargoes which should take the pressure off prime here.  So, expect these prices to be off in May by $10-20.  This should shrink the spread between shredded/HMS and prime as those grades may trade sideways,” is what one of our sources told us over the weekend.