June Ferrous Scrap Prices Tough to Call

Ferrous scrap prices for June are difficult to predict, report Steel Market Update sources, who disagree on the degree to which the lower tariffs on Turkish steel will affect demand for scrap exports from the U.S. Most expect scrap prices to settle sideways next month after declines for most of the year, but a small increase or decrease is possible.

“Expectations for June are a mixed bag,” said one scrap dealer. “Recent sales to Turkey were up as high as $20/GT and most recently up $15/GT. Because of this, mills in the eastern U.S. are expected to have to raise prices to compete with the export market. The farther one gets from the coast, the weaker the market. Domestic demand seems to be dropping with many mills expressing worsening order books. Sideways or very close to sideways for obsolete scrap grades should be the market for inland mills. Primes should fare better with mills stocking up before the auto plant shutdowns.”