June Ferrous Scrap Pricing Expected to Move Sideways

Steel Market Update has begun to ask our scrap sources to provide some color as to what we can expect. Early indications from our sources are to expect ferrous scrap prices to trade “sideways” (unchanged) from the levels reported at the beginning of May.

One of our sources told us, “The June market looks to be basically sideways despite the in-house broker for Nucor, DJJ, trying to convince dealers that prices are down $10-20 gross ton.  Export sales have risen modestly and dealers struggle each month to fill existing orders due to reduced inflow into their yards. Mills have not indicated if they will issue cancellations of scrap orders at month’s end.  Demand is still good but supply is iffy.”