Ferrous Scrap Prices: Prime Grades Down $20, Obsoletes Sideways in February

Ferrous scrap for February is settling at sideways prices for obsolete grades and down about $20 per ton for prime grades, report Steel Market Update sources. This latest dip follows on a $30-40 per ton decrease in January, largely attributed to weak demand from overseas.

“A rising export market, which curtailed East Coast suppliers from shipping domestic, and extended winter weather were the two major factors in stemming the drop of obsolete grades,” reported one dealer in the East. “As the trading week has progressed, momentum has shifted clearly into the sellers’ hands. Mills are still looking for scrap and dealers are holding out for higher prices.” The scrap market is poised to rise in March, he predicted, as export prices continue to climb, weather may continue to slow inbound flows and finished steel prices increase, raising consumption rates.