Ferrous Scrap Prices Down in August

Scrap is trading lower in August. Steel Market Update sources in the ferrous scrap market report that the price of obsolete grades has declined by about $20 per ton and prime by $10 per ton. Weakness in foreign markets has reduced scrap exports, increasing the domestic supply.

“Looking forward, I don’t expect prices to really improve going into September mainly because of the weakness in export demand,” said a scrap dealer in the Northeast. “I don’t think I am overstating it to describe the economic situation in Turkey as dire. The prices for 80/20 CIF Turkey are in the mid to high $320s, and I don’t see them strengthening any time soon. In fact, they could weaken further.”