Scrap Prices Mixed in Unusual August

Ferrous scrap prices for August were not as weak as expected, but varied widely by region. Prices on the East Coast and in the Southeast were up $30/GT due to strong export demand, while prices in other parts of the country traded sideways for obsolete grades and down $20-30 for primes, report Steel Market Update sources.

“The initial steel mill narrative for the August ferrous trade was that prime grades would again prove materially weaker due to oversupply and that obsoletes couldn’t be much stronger from July levels because of the prime weakness. Those turned out to be generally erroneous assumptions” said one SMU source.