Ferrous Scrap Prices Move Lower in February

Ferrous scrap prices for February are down around $20-30/GT for obsolete grades and $10-20/GT for prime grades, report Steel Market Update sources, adding to the downward pressure already being felt on finished steel prices.

“This price trend is in line with the 10-year average price movement for February,” said CRU Senior Analyst Ryan McKinley. “Buying programs are generally weaker m/m given that February is the shortest month of the year, but this year downward price pressure has been driven by supply. Winter has been mild throughout much of the country, which has both helped scrap collection and delivery rates to mills. Moreover, a price decline in the export market helped draw scrap inland and put yet more supply onto the market.”