Scrap Iron Pricing Edges Upward

After a three-month period of almost complete flatness, per-ton pricing for ferrous scrap moved up by several dollars throughout the United States in August. Pricing for all grades across all regions moved up from $3 to $16 per ton.

According to figures compiled by the Raw Material Data Aggregation Service (RMDAS) operated by Management Science Associates’ (MSA), Pittsburgh, in both northern regions mill buyers paid $16 per ton more for Prompt Industrial Composite grades. The smallest swing occurred for #1 heavy melting steel (HMS) in the North Midwest region, which increased in price just $3 per ton.

In August, per ton prices paid by steel mills in the United States ranged from $242 to $313 per ton. Number two shredded scrap fetched average pricing in a narrow range from $271 to $279 per ton, with mills in the South paying at the lower end of that scale.

Mills in the South paid the least, on average, for all three of the grades for which MSA releases data.

The seasonal slowdowns in the manufacturing sector that may have prompted the flat summer market may be coming to an end.

Although the calendar was still turned to the August page, mill buying activity seemed to increase in anticipation of an end to the summer plant shutdown and vacation seasons.

Ferrous scrap buyers showed enough interest in early August to move pricing up an average of about $10 per ton, with variations depending on the grade and the region.

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.