Ferrous Scrap

September scrap prices come in flat, higher tags seen by end of '24

September 12, 2024

September scrap prices came in a soft sideways, with only mild hopes for a higher October, market sources said.

SMU’s September scrap pricing stands at:

Busheling at $390-400/gross ton (gt), averaging $395, flat from August.
Shredded at $370-380/gt, averaging $375, down $2.50 from August.
HMS at $315-330/gt, averaging $323, down $7.50 from August.

One source said October should resemble September: “not great demand from domestic mills.”

He said there is some incentive to start stocking up “before what I think will be an inevitable price increase into the end of the year, and reasonably level overseas prices.” But he believes there won’t be a “whole lot of movement on price next month.”

A second source agreed. “It’s hard to see anything but a sideways market next month, given outages and cutbacks. But after that, we should higher prices to end the year,” he said.

A third source was slightly more optimistic, saying it seems like pricing will move up in October.

This week, SMU survey respondents were widely proven correct in their prediction of a sideways move for prime scrap tags in September, with 80% expecting prices to be flat this month. Only 7% anticipated an increase.

Some comments from the survey respondents included:

“Lack of demand and less production.”

“We’ve been told ‘soft sideways’.”

“Do not think the demand is there.”

“All alternative iron-bearing materials are down.”

Correction: An earlier version of this story reported survey respondents were providing a forecast for October.

Ethan Bernard

Ethan Bernard is a reporter and 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.