Steel Scrap Pricing Stabilizes

After two months of sharp decline, prices paid for ferrous scrap in early and mid-June stabilized in the $250 to $290 per ton range, depending on the grade and the region.

Buyers of ferrous scrap in most parts of the country paid roughly the same in June for all grades of scrap as they did in May. Average per-ton pricing rose by as little as $1 per ton or as much as $7 per ton, depending on the grade and region.

According to figures compiled by the Raw Material Data Aggregation Service (RMDAS) operated by Management Science Associates’ (MSA), Pittsburgh, mill buyers in the North Midwest region paid an average of $7 per ton more for Prompt Industrial Composite grades, such as #1 busheling and bundles.

The price of the #2 shredded scrap grade actually fell in the RMDAS South region, declining $2 per ton. In other regions, however, the grade rose from $2 to $5 per ton.

The Prompt Industrial Composite grade benefited the most from the price stabilization in June, with the price rising across all regions and rising nationally by an average of $6 per ton.

Regionally, mills in the North Midwest region, on average, paid the most per ton for all three grades of ferrous scrap. Per ton averages paid by mills there in June ranged from $251 per ton for #1 HMS and $295 per ton for Prompt Industrial Composite purchases.

Both buyers and sellers will be surveying the supply and demand landscape to determine whether the slight price bump in June is preceding a rise in prices for the rest of the summer, or whether it merely represented a pause in the declines of the previous two months.

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.