Ferrous Scrap Prices Trending Higher in January, February

The January buy period saw ferrous scrap prices move significantly higher, lending support to recent mill price increases. While February is historically a down month for scrap, sources predict that February prices will be as high or even higher than January’s.

January ferrous markets ended higher by $30 per gross ton for obsolete grades and $20 per gross ton for prime grades, reports a dealer in the Northeast. The price increases were driven by better domestic demand, a strong export market and tighter scrap supplies at dealer yards, particularly for obsolete grades including HMS, plate and structural, and shredded. The spread between prime and obsolete scrap has returned to a more normal range of approximately $40 per gross ton from double that at times last year. “In many respects, it was a typical January buy period, and mills and dealers seemed to work out their business without an inordinate amount of acrimonious debate,” the dealer noted.