RMDAS Ferrous Scrap Pricing Makes Healthy Jump

The New Year has started positively for scrap processors, as steel mill buyers were paying anywhere from $19 to $34 per ton more for the most common ferrous scrap grades in January purchases recorded throughout the United States. (To view the prices click on the following link -- RMDAS Scrap Prices)

The amounts varied by region, but all grades showed price gains, according to figures compiled by the Raw Material Data Aggregation Service (RMDAS) of Management Science Associates Inc. (MSA), Pittsburgh. Click on the following to view larger chart -- RMDAS Chart)

Nationally, mill buyers paid $27 per ton more on average for prompt industrial No. 1 busheling and bundles, $24 per ton for No. 2 shredded scrap and $23 per ton for No. 1 heavy melting scrap (HMS).

Combined with December gains, processors and shippers of ferrous scrap are seeing healthy increases that could be reflecting both seasonal availability of scrap because of foul weather and the need for mills to build back some inventory after an autumn of less frequent buying.

The trend is dramatically different from what was occurring in January of 2006, when the year started off with a thud as far as those favoring higher prices were concerned.

In January of 2006, mills paid $19 less per ton for No. 2 Shredded Scrap, reflecting what would turn out to be a low point in the market for the entire year.

With January this year starting off with a price gain instead of a drop, searching for a pattern of how 2007 might be similar to last year has already been made difficult.

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.