Ferrous Scrap Prices Collapse on Waning Demand

SEATTLE (Scrap Monster): The latest pricing data published by the Pittsburgh-based Management Science Associates (MSA) suggests heavy decline in ferrous scrap prices in October this year.

The average No.1 Heavy Melt Steel (HMS) scrap prices averaged at $189 per ton during the month. The prices recorded notable decline from $226 per ton in September to $185 per ton in October in the North Midwest region. The North Central/East and South regions witnessed decline by $31 per ton in HMS prices.

The average mill purchase price for ferrous scrap was $220 per ton, whereas that of prompt industrial grades was $235 per ton.

ALSO READ: World Ferrous Scrap Flows Seen Impacted by Trade Restrictions

The North Midwest region ferrous scrap prices were down by $35 per ton to $218 per ton. The ferrous scrap prices in the U.S. South declined from $257 per ton in the previous month to $228 per ton in October. The North Central/East region reported a decline of $34 per ton, falling from $250 per ton to $$216 per ton over the prior month.

The overall decline in demand, triggered by series of steel mill outages and subdued export activity, prompted a decline of $44 per ton in prices of industrial grade scrap in the North Midwest region. The average prices in the North Central/East and South regions fell by $40 per ton and $36 per ton respectively.

The mills do not expect marked improvement in ferrous scrap pricing through the rest of the year.