September Scrap Prices Expectations Sideways or Rising

Steel Market Update sources expect ferrous scrap prices to be sideways or rise slightly going into September. The move would potentially end the four-month streak of declines seen since the spring’s record high tags. Obsolete grades are anticipated to remain relatively stable from August to September, while prime scrap is expected to increase $20-$30 per gross ton.

“Shredder feed flows have slowed since July, providing some support [to prices],” said one Northeast scrap executive. “Prime grades could see higher pricing to correct the unsustainable discount to shredded that happened in August.”