Ferrous Scrap Prices Looking Down $30-50 in April

With much of U.S. manufacturing on hold to control the spread of the coronavirus, it’s no surprise that steel production and demand for scrap are substantially lower than last month. Ferrous scrap prices are generally trading down $50 per ton for obsolete grades and $30 per ton for prime grades in April, reported Steel Market Update sources, though trading was ongoing as of Thursday. Whatever the final figures, scrap prices will be significantly lower and add further downward pressure to finished steel prices.

“While scrap demand is substantially weaker month over month, scrap supply has dried up and the export market has risen to the point where dealers have pushed back on these lower scrap prices,” said CRU Senior Analyst Ryan McKinley.