RMDAS Index Shows Price Gains

May purchasing by steel mills, based on RMDASTM data, shows that mills in all regions of the country paid several dollars more per ton for ferrous scrap, on average. The biggest gain (from $17 to $19 per gross ton) came in the Prompt Industrial category, while #1 HMS ticked upward only from $2 to $5 per gross ton.

Reported regional aggregated spot market prices per gross ton shown for each commodity are based on actual order data sent to Management Science Associates’ (MSA) for its Raw Material Data Aggregation Service (RMDAS). The submitted data is processed by MSA as of the 20^th of each respective “buy month” and rounded to the whole integer. A map of RMDAS regions is available at http://rmdas.msa.com, as is a further explanation of RMDAS methodology and an accompanying disclaimer.

Three grades are calculated for the index. No. 2 Shredded Scrap is defined as containing .17 percent or greater copper content. The Prompt Industrial Composite consists of an average of #1 bundles and #1 busheling. #1 HMS is prepared obsolete scrap cut to 5 feet or less.

In May, mills paid an average of $313 per ton for the Prompt Industrial Composite grades; $267 per ton for #2 Shredded Scrap; and $248 for #1 HMS. To view a larger image of this chart click on the following link -- RMDAS Chart

The highest average prices were paid in the North Central/East Region, while mills in the South paid lower average prices, including $16 less per ton, on average, for the Prompt Industrial grades.

Those seeking more information about RMDAS can contact Ralph Pinkert at 773-588-1199 or via e-mail at RPinkert@MSA.com.

To view the complete set of monthly Ferrous Scrap Index figures released by MSA, including those on a regional basis, click on the following link -- Index Figures.