RMDAS Pricing Falls Back

After several months of upward momentum, shippers of ferrous scrap received less per ton for ferrous scrap in April compared to the month before. The price drops recorded by the RMDAS system were across all grades and regions, ranging from $19 to $46 per ton. (click here to view larger version of chart-- April Chart)

After four straight months of progressively higher prices, North American mills in general paid from $20 to $40 less per ton for ferrous, according to figures compiled by the Raw Material Data Aggregation Service (RMDAS) operated by Management Science Associates’ (MSA), Pittsburgh. .(To view the figures for April click on the following link -- RMDAS April Pricing)

Many ferrous shippers say the downturn was not surprising, and that they could see it coming after an unusually hectic March. Part of the March upturn (which saw per ton pricing rising by as much as $80 in some regions) was blamed on one Midwestern mill in particular that found itself bidding prices up in a frantic bid to build up its inventory after running perilously close to running out of feedstock.

Additionally, waves of harsh weather in several parts of the country curtailed scrap flows just as domestic mills were aggressively entering the market to obtain feedstock and as several large export orders were being filled.

Some of those same circumstances existed in April, but not to the same extent as in March. Obsolete scrap flowed much better in early April in most parts of the country, although a late snowfall again disrupted some truck traffic.

Overall, scrap recyclers in April were reporting a better match between flow into their yards and demand from mills, a situation that was reflected in an easing back of per-ton prices for ferrous scrap.

The RMDAS figures indicate that, nationally, #2 shredded scrap took the biggest drop, moving down in price $37 on a national average. Regionally, the grade fell $46 on average in the South.

Despite the fallback, prices remain near their historic highs and, on average, some $80 to $100 per ton higher than they were six months ago.

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.