Ferrous Scrap Prices Likely Lower in July

Ferrous scrap prices most likely will move lower in July as scrap supplies are increasing at a greater pace than steel demand. Finished steel prices have shown some weakness lately as the market struggles to get back on track and are unlikely to get any help from scrap next month.

Ferrous scrap prices rose $30-40 in May as coronavirus shutdowns disrupted scrap generation and collection and supplies tightened considerably. Scrap prices traded mostly sideways in June, as prime scrap rose by $10 and shredded scrap declined by $10 per ton. Supplies will loosen further next month as more obsolete and prime scrap enters the market, say the experts.