RMDAS Ferrous Prices Show Minor Decline

Ferrous scrap has been purchased for a few dollars less per ton in November compared to the month before, according to figures compiled by the Raw Material Data Aggregation Service (RMDAS) of Management Science Associates Inc. (MSA), Pittsburgh.

Buyers of shredded scrap paid $7 per ton less on average in November, while prompt industrial #1 busheling and bundles drifted down another $18 per ton after falling by $33 in October. The smallest decline occurred in the #1 heavy melting scrap (HMS) category, with average purchases dropping just $4 per ton. (To view full price report click on the following link -- Complete Index Pricing)

The RMDAS North Midwest region (which includes mills in Minnesota, Iowa, Illinois and northwestern Indiana), showed the steepest decline, with mills there paying $26 per ton less for Prompt Industrial grades, $17 per ton less for shredded scrap and $12 per less for #1 HMS. To see a larger version of the chart click on the following link -- November Pricing

Average buying prices fell less sharply in other regions, with the #1 HMS grade remaining even with its October price in the North Central/East region, which includes Michigan, Ohio, Pennsylvania, Kentucky and New Jersey.

Overall, a downward price trend continues, but the pace of the decline in November seems to have slowed compared to months such as August and October. Market players hoping for a bounce-back, such as ones that occurred in February or September, however, were probably disappointed.

Compared to one year ago, domestic mills are paying an average of $47 less per ton for Prompt Industrial grades, $28 per ton less for #2 Shredded Scrap, and $30 less for $1 HMS.

In that 13-month span, average national pricing for the Prompt Industrial grades reached as high as $344 per ton this June. The $231 average for this November marks the lowest average price for those grades.

The Raw Material Data Aggregation Service (RMDAS) Ferrous Scrap Price Index is based on data gathered from a statistically significant compilation of verified ferrous scrap purchase transactions.

RMDAS is a service of Management Science Associates Inc. (MSA), Pittsburgh. Those seeking more information about RMDAS can contact MSA’s Ralph Pinkert at 773-588-1199 or via e-mail at RPinkert@MSA.com.