Ferrous Scrap Prices Decline in May, June Unclear

Ferrous scrap prices have declined a bit in May, reported Steel Market Update sources, due to weakness in the export market and warmer spring weather that aided scrap collection and boosted supplies. Looking ahead to June, sources expect further change, but they disagree on the degree and direction.

In the Ohio Valley, prices declined, but only on obsolete grades by $10 per ton, while primes went sideways, said one dealer. This is a testament to the strong scrap demand in the domestic. Mills are more concerned with keeping pipelines full than quibbling over $10 in the price of scrap, he said. He reports shred at $380 per gross ton, bush at $395 to $410, P/S at $385 and HMS at $370. “Prices in June should remain in this trading range barring transportation restrictions or changes in the international markets,” he said.