August Scrap Prices Poised to Move Higher

Steel Market Update (SMU) has been in contact with our scrap sources who are advising us ferrous scrap prices will move higher as we get into August negotiations with the steel mills. We have been hearing scrap will move by a minimum of $15 per gross to $25 per gross ton.

“Ferrous grades will certainly be higher in August, by anywhere from $10-$20/GT in my opinion,” said an East Coast dealer. “The primary drivers are stronger export markets (latest deals are around $315/MT CIF Turkey for 80/20, which is up $20 in just the last month), and a rising mill utilization rate in the U.S. (in July at that).  The weaker dollar, improving economic conditions in emerging markets (especially Turkey), rising Fe ore and met coal, plus fewer and higher priced Chinese semi and finished steel exports are all supportive of rising scrap prices for the time being.”