Ferrous scrap mill buying prices, measured by the Raw Material Data Aggregation Services (RMDAS) of Pittsburgh-based MSA Inc., show mills in the RMDAS North Central/ East region paid as much as $15 per ton less for scrap compared with mills in other regions.
The transaction figures collected by RMDAS, which tracks prompt industrial scrap, shredded scrap and No. 1 heavy melting steel (HMS), occurred in the first three weeks of July. The RMDAS North Central/ East region includes Kentucky, Michigan and Ohio. The RMDAS North Midwest region includes mills and melt shops in Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Wisconsin and northwest Indiana.
Prompt industrial scrap prices fell by $10 per ton compared with June prices in the North Central/ East region and fell $5 per ton in the North Midwest. Shredded scrap prices fell $7 per in the North Central/ East and No. 1 heavy melting steel (HMS) fell $6 per ton. Shredded scrap prices in the South rose $1 per ton compared with June transactions.
Buyers in the South paid an average $15 per ton more for prompt scrap, $14 more per ton more for shredded and $13 per ton more for HMS compared with mills in the North Central/ East. Southern mills paid $14 more for prompt scrap, $11 per ton more for shredded scrap and $1 per ton less for HMS compared with buyers in the North Midwest.
RMDAS pricing showed ferrous prices declined as much as $33 per ton in June; however, in July, prices fell between $1 to 10 per ton, with the biggest drop in pricing being in the North Central/East region.