Ferrous Scrap: Down $20 for Obsoletes in August

As scrap prices for August were settling today, obsolete grades generally traded down $20/GT, while prime grades traded sideways, sources tell Steel Market Update. Late reports indicated busheling may be down $10 in the South. Ferrous scrap prices factor into the mills’ costs and how much they charge for finished steel products.

The drop in obsolete grades by all the mills in the Ohio Valley and most in the Midwest was primarily due to steady inbound flows to the scrap yards and a weakening export market, said one scrap executive. Prime prices held firm because of the growing demand from the electric-arc furnaces and stunted generation from manufacturing plants affected by the shortage of semiconductors.