Scrap Trades Lower by $20-40 Per Ton in July

As expected, ferrous scrap prices declined in July, adding downward pressure to already weak finished steel prices. Steel Market Update sources report that obsolete scrap traded down $10-20 per ton, while prime grades were lower by $40 across the country. Scrap supplies have increased at a greater rate than steel production, say the experts, which is the main reason for the declines. The latest declines put the average price for busheling at approximately $275-280/GT, shredded at $235-245/GT and HMS at $205/GT.

Commenting during Steel Market Update’s Community Chat webinar on Wednesday, CRU Senior Analyst Ryan McKinley noted that scrap prices declined steadily in 2019 on weakening steel demand, but were looking up in 2020. “People were expecting to have a really good year until the virus hit. Then steel demand evaporated overnight as did scrap demand.”