'Sloppy Sideways' Expected for February Scrap Pricing

Three weeks ago, the expectation for February ferrous scrap was for prices to be firm to slightly higher than January. This was due to rising prices on exports of ferrous scrap to Turkey, as well as cold weather in the north and large buys by the domestic steel mills as they restock after running inventories lower at the end of the year.

Over the past week, we have seen a weakening in export prices and a bit of a reprieve from the cold and snow, causing the market to rethink February’s price direction. Scrap guru Mike Marley of World Steel Dynamics reported to his clients late last week: “Now, instead of talking about another up $20 to $30 per gross ton, many are anticipating a ‘sloppy sideways’ market.”