Ferrous Scrap to Start the New Year Strong

Ferrous scrap prices are expected to trade significantly higher again in January on strong demand from mills both domestic and foreign, report Steel Market Update sources. Scrap jumped by more than $70/GT in December and the uptrend is likely to continue into the new year, lending further support to higher finished steel prices.

“Like many others, I expect a repeat of December price increases, with the biggest difference being that January will have many more tons bought and sold,” said one dealer in the Northeast. “Prices for shred will most likely trade for $470-500/GT and primes should exceed $500/GT to mills throughout the country. Logistically, getting all of the scrap traded in January to mills before the February buying period seems a stretch. This factor, combined with a very hot export market, will delay the inevitable price correction that is looming.”