Ferrous Scrap Prices Surprise to the Low Side in March

Ferrous scrap prices surprised to the low side in March, trading sideways to up just $10 per ton, well below initial expectations of up $10-30/GT. The mills were anticipating that higher scrap prices this month would lend support to the $40 increase in finished steel prices they announced last week.

“In the Ohio Valley, obsolete scrap traded sideways for the most part, although there were a few mills paying up $10 for shred and plate. Prime scrap traded up $10,” reported one Steel Market Update source. “For the most part, suppliers capitulated at lower numbers because of growing concerns that the April/May markets will be no better. These bearish sentiments are almost entirely due to a perceived economic slowdown because of coronavirus-related issues. Scrap supply is tight and dealers who raised prices in anticipation of higher prices are now dropping prices and hoping for the best.”