Scrap Prices North America
January 28, 2019
Ferrous Scrap Prices: Sideways in February?
Written by Tim Triplett
Steel Market Update sources disagree on whether ferrous scrap prices will see a small decline or move sideways in February. But the market remains unusual for this time of year when scrap prices normally increase as the mills restock ahead of new-year steel demand.
Scrap prices surprised the market with a $30-40 per ton decrease in January. The main cause was weak scrap demand overseas, which prompted exporters to compete for domestic buyers in the Midwest and Ohio Valley. SMU’s sources agree that the export markets are now strengthening. Combined with the difficult winter weather conditions restricting scrap flows in the U.S., scrap supplies are likely to tighten, stabilizing prices. The question is, how much?
