November ferrous scrap market slows with export pullback

The ferrous scrap market for November is starting to look more like the several preceding months. At the outset there was optimism. In most districts, prices rose, but not dramatically. In the Chicago and Detroit districts, prices remained sideways. The Turkish mills came back into the deep sea export market and bumped up prices. However, things started to unravel.

The Turkish mills pulled out as fast as they came back. Their absence sent European cargo tags down over $20 per metric ton (mt) and the US has reluctantly followed with similar drops. Obsolescent scrap flows in the US have not faltered significantly and have actually picked up in some areas. This has led some to believe shredded prices will remain flat for November. Industrial grades have been seen as decreasing in general, and probably will not have a chance to recover until early next year, US election outcome notwithstanding.