RMDAS Figures Point to Steel Scrap Price Gains

Steel mills are paying more for ferrous scrap in June, with prompt industrial busheling and bundles showing the biggest gains.

The RMDAS Prompt Industrial Composite grade, which tracks mill purchase prices for #1 busheling and #1 bundles, showed a $31 per ton average price increase throughout the United States. The average price paid for these grades jumped from $313 in May to $344 in June.

The Prompt Industrial Composite price jump was considerably higher than the average $10 per ton more paid in June for #2 Shredded Scrap or the $2 more per ton paid for #1 Heavy Melting Scrap (HMS).

The $344 per ton for prompt (new production) scrap marks the highest per-ton figure tracked by the RMDAS system thus far in 2006.

The June figures for all grades mark new monthly peaks, although the $344 figure for the Prompt Industrial Composite grades puts it well above the prices being paid for other grades. That figure is $67 more per ton than what is being paid for shredded scrap and $94 more than what is being paid for #1 HMS.

Regarding regional differences, mills in the United States South are paying an average of about $15 per ton less for the Prompt Industrial Composite grades than mills in other parts of the country.

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.