Scrap Prices to Move Higher in December-January

In what will be seen as supportive of higher domestic steel prices, ferrous scrap prices are expected to jump by $30 per ton or more in December on tight supplies and improving demand in the U.S., following on a similar increase in November.

“Going into December and year end , the U.S. scrap market has resumed its traditional seasonal characteristics. With the beatdown the market took in the first 10 months of the year, the flow of obsolescent scrap has slowed noticeably and won’t pick up without a price increase until March/April depending on the severity of the winter. Therefore, the December market is poised for a jump,” said one SMU source.