Prices

Domestic Scrap Tags Could Rebound in August: Sources

August 1, 2023

August could see US scrap prices stabilizing, or even rising, depending on the grade or region, scrap sources told SMU this week.

“I believe scrap prices have stabilized,” one scrap source said, adding that tags could get some upward movement this month.

Another source agreed, saying things are looking pretty stable into the August trade.

“Obsoletes could even trade a little higher due to tight supply and continued decent demand in Ohio and down South,” the second source said. “Export is in a tough spot, having just traded lower to Turkey last week despite low dock inventories in the US and Europe.”

A third source believes prices will vary depending on grade and region.

“In the Ohio Valley there is increased scrap demand with very limited supply,” the third source noted. He said that expectations are strong sideways “with increases as high as $20 expected in some mills.”

According to SMU’s most recent survey data, 66% of steel buyers surveyed thought prime scrap prices would be sideways in August, with 25% of those surveyed saying prices would fall and 9% forecasting they would rise.

SMU’s July tags stood at:

• Busheling at $430-460 per gross ton, averaging $445, off $15 from the previous month.

• Shredded at $370-410 per gross ton, averaging $390, down $15 from the previous month.

• HMS at $290-330 per gross ton, averaging $310, up $5 from the previous month.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.