The “red hot” ferrous scrap market showed slight cooling during domestic trading in August, as prime tags traded mostly sideways and secondary tags were lower by $20/GT from July levels. Markets settled quickly after much pre-market hype and resistance to any lower prices, and did so largely at expected levels.
Ferrous scrap supplies remain plentiful domestically and exports are in oversupply, helping to nudge secondary prices lower in August and creating some anticipation that prime tags may soften in September as well. It would mark the first drop for prime scrap in more than a year.
Currently, mills are pursuing additional post-market offers for secondary scrap at August levels, while offering lower prices for prime scrap. This is consistent with August trading in U.S. Southern markets and Canada.
Metro Alloys has successfully served its clients for more than 30 years in all market conditions and we encourage you to contact your sales representative, Abby Frank or Gary Kamp with any questions about current market conditions.