Flatness Reigns for RMDAS Pricing

For the third straight buying period, shippers of ferrous scrap were able to fetch a stable buying price in the $250 to $300 per ton range for their products.

The July buying period yielded average prices that were much the same as those paid in both May and June. Average per-ton pricing rose or fell by as little as $1 per ton or in the $2 to $5 per ton range for most other grades, with one exception. In the South, mills paid some $12 per ton more on average for prompt industrial grades such as busheling and #1 bundles.

According to figures compiled by the Raw Material Data Aggregation Service (RMDAS) operated by Management Science Associates’ (MSA), Pittsburgh, the least expensive grade in a regional market was #1 HMS in the South, which fetched just $234 per ton.

However, the South was also the home of the nation’s most expensive grade—$298 per ton for what RMDAS classifies as the Prompt Industrial Composite grade, consisting of new production scrap such as #1 busheling and #1 bundles.

In the North Midwest region, the spread was narrow between grades, with #1 HMS averaging $258 per ton and Prompt Industrial Composite buys averaging $290 per ton.

The static pricing matched the mood in many scrap yards. According to one recycler, it offers welcome predictability on the one hand, but it can also cause apathy on the part of generators and small dealers. He comments. “The market right now is lethargic. People are just sitting on their scrap.”

Seasonal slowdowns have hit many sectors of the generating market. “The busiest vacation weeks are before and after the Fourth of July,” notes an Ohio scrap recycler. This year, when the Fourth fell on a Wednesday, that greatly diminished flow for that particular week, he adds.

The Raw Material Data Aggregation Service (RMDAS) Ferrous Scrap Price Index is based on data gathered from a statistically significant compilation of verified ferrous scrap purchase transactions.

RMDAS is a service of Management Science Associates Inc. (MSA), Pittsburgh. Those seeking more information about RMDAS can contact MSA’s Ralph Pinkert at 773-588-1199 or via e-mail at RPinkert@MSA.com.