Ferrous Scrap Trends: Lower in September, But Higher Long Term

In the near term, ferrous scrap prices are heading down. But in the long term – with the proliferation of electric arc furnace (EAF) steelmaking around the globe putting added pressure on scrap supplies – the price trend for scrap is definitely pointing upward. The cost of scrap and other metallics is of high interest to steel buyers as it factors into the price of finished steel products.

Sources tell Steel Market Update they expect to see scrap prices decline in September. Prime grades are likely to trade $30-40/GT lower, while obsolete grades will also move down, though probably not as much at around $20/GT.