Ferrous Scrap Prices Drop Again in May

Ferrous scrap prices are down again in May by roughly $30 for obsolete grades and $40 for prime grades, report Steel Market Update sources. May marks the fourth month this year that has seen scrap prices decline. With the mills reportedly cranking out steel at over 80 percent of their capacity, the apparent weakness in scrap demand has left many scratching their heads.

“We’ve seen a harsh drop in scrap prices and no material change in the mill operating rate, and that just does not make a whole lot of sense,” said one dealer in the Northeast. The downtrend in scrap prices is largely a result of reduced demand from overseas and a gradual weakening of the domestic steel market, he said, adding, “Without the tariffs it would be even worse.”