Ferrous Scrap Prices Expected to Decline in May

Steel Market Update’s scrap sources expect ferrous scrap prices to drop by at least $10-$20 per ton in May, and possibly as much as $30-$40 per ton, as spring weather increases the scrap flows and boosts supply. Adding to the downward pressure on prices, they report, is weakness in the global market.

One dealer in the Northeast expects a typical May trading pattern, with U.S. domestic scrap markets trading at lower prices than in April. “Obsolete grades will trade weaker than prime grades, though I expect all grades to see lower price levels in May,” he said. He expects shredded to trade lower by $10-$20/GT, or possibly more depending on the region, and prime grades to trade about $10 lower.