CRU: Oversupply and Outages Push U.S. Scrap Prices Lower Than Expected

By CRU Analyst Ryan McKinley

Domestic scrap prices in the U.S. fell by $30-40 /l.ton in September depending on region and grade—by about $20 /l.ton lower than was generally expected by the market. The steeper-than-expected decline was caused by a confluence of factors including ample supply, mill outages and a weakening export market. Obsolete prices were mostly under less pressure than primes, although this varied regionally. This month’s decrease puts shredded scrap prices at their lowest level in nearly three years.