Price for Obsolete Scrap Expected to Dip in April

Obsolete scrap prices are widely expected to decline in April, while prime scrap prices move sideways, predict Steel Market Update sources. Ferrous scrap prices saw a big jump in March, adding to the upward momentum on finished steel prices, but the April effect is shaping up to be more moderate.

“Growing obsolete scrap availability caused by warmer weather and lower export prices will push domestic obsolete scrap prices down $20-30/GT in April,” forecast one dealer in the Northeast. “Prime scrap prices should remain the same, as most buyers believe the same amount of prime will be available regardless of price. A period of lower prices should be relatively short-lived as both sides of the fence eye the growing macro demand for scrap into the summer.”