Ferrous Scrap Trades $30-50 Per Ton Higher in May on Tight Supplies

Ferrous scrap prices for May have settled up $30/GT for shredded and up $40-50/GT for busheling as the coronavirus shutdowns have disrupted scrap generation and collection, resulting in extremely tight supplies. Higher scrap prices may lend support to the higher finished steel prices announced by the mills this week.

The tight supply is a more significant factor than the reduced demand this month, said one Steel Market Update source. Prices for all ferrous grades were higher than April across the board, though the extent of the increases varied. “The EAF mills clearly needed scrap after not buying much in April and taking some significant finished steel sales over the last few weeks. The tightest regions were in Indiana and the river mills where the auto plant shutdowns deprived the mills of the prime scrap they normally purchase.”