Ferrous Scrap Prices Move "Mostly Sideways" in June

Ferrous scrap prices, which were widely expected to move higher again in June, traded “mostly sideways” as supplies increased while demand continued to lag, report Steel Market Update sources. In May, ferrous scrap prices settled up $30 per ton for shredded and up $40-50 per ton for busheling as coronavirus shutdowns disrupted scrap generation and collection. Early forecasts called for more of the same for June, but that is not the way it played out.

“The June market in the Ohio Valley is unlike any I have seen in my career,” said one dealer in the Northeast. “The amount of purchased scrap in this region is virtually zero as mills are either shut down or taking every conceivable step to conserve cash—from melting existing scrap inventories down to zero to shipping home scrap from sister plants to avoid paying for scrap on the outside.”