Scrap Prices Expected to Decline $30-50/ton in June

Steel Market Update sources expect ferrous scrap prices to decline in June, following record high prices in March through May. Some expect prime grades to decline as much as $50 per gross ton from May, with obsolete grades down anywhere from $20-$50 per ton.

“Markets are worsening by the day. It looks like there is continued weakness both domestically and internationally. Our domestic market is suffering from oversupply as the US scrap industry is running on all eight cylinders,” said one scrap executive. “The Russian/Ukrainian war is now starting to depress steel and scrap prices as they try to sell their products at bargain prices.”  He went on to say obsolete grades could bear the brunt of the declines, while prime scrap might be propped up as auto assembly plants take down time.