Ferrous scrap prices continue to drop

Prices for ferrous scrap continued to drop in October, falling from $29 to $44 per ton, according to RMDAS (Raw Material Data Aggregation Service) pricing from Pittsburgh-based Management Science Associates (MSA).

No. 1 heavy melt steel (HMS) averaged $189 per ton in October in the U.S., while mills paid an average $220 per ton for ferrous scrap and $235 per ton for prompt industrial grades.

HMS lost more than $40 in value in the North Midwest, falling from $226 per ton in September to $185 in October. Prices for HMS dipped $31 in the North Central/East and South regions, where mills paid $188 per ton and $195.

Ferrous scrap prices lost $35 in value in the North Midwest, down to $218 per ton for the month. Scrap prices fell by $29 in the South, from $257 per ton to $228, and by $34 per ton in the North Central / East, falling from $250 per ton to $216.

Prompt industrial grades dropped by $44 per ton in the North Midwest, falling from $273 per ton to $229 for the month. Prices lost $40 in value in the North Central/East region and $36 in value in the South.

“Demand overall has waned,” says the scrap buyer in the Midwest. “With all the outages and reduced buys, it’s becoming more and more difficult to place tons month in and month out.”

For Recycling Today's report on the ferrous scrap market, click here.