Scrap Prices Begin to Stabilize in February

While trading was still ongoing as of Friday, it appeared ferrous scrap prices for February would settle sideways for prime grades, but down for obsoletes, as shred supplies have increased and export demand has decreased. Steel Market Update sources reported the February busheling price unchanged at around $495/GT and the shred price down by $50-60 to around $400/GT.

“Price drops for obsolete grades are a result of price elasticity—higher prices have increased inbound flows. Prime scrap, which is more inelastic, has not dropped because its supply has not increased substantially,” said a dealer in the Northeast. The export market has dropped $70-80/GT and has lowered the scrap “floor” for the domestic market, he added.