For the second consecutive month, buyers of ferrous scrap paid considerably less for all grades of the commodity. Nationally, average per-ton pricing fell by as much as $61 for prompt industrial grades (#1 busheling and bundles) and $57 for shredded scrap.
(click here to view larger version of chart-- May Chart)
According to figures compiled by the Raw Material Data Aggregation Service (RMDAS) operated by Management Science Associates’ (MSA),
Using the #2 shredded scrap grade as a benchmark, the $262 per ton paid by mills in May of 2007 marks the lowest price received by shippers since January of this year.
Between November 2006 and March of this year, ferrous scrap dealers enjoyed a series of price hikes that saw them reach a peak in March of $356 per ton (on average) for #2 shredded scrap. (To view the figures for May click on the following link -- RMDAS May Pricing)
But the past two months have seen recyclers lose most of those gains, as shredded scrap fell by $37 per ton in April followed by the $57 per ton drop in May.
The RMDAS figures indicate that, nationally, prompt industrial composite grades took the biggest drop with its $61 per ton decrease. Regionally, the grade fell by $63 in the North Central/East market, but by just $47 per ton in the South.
Heading into the June pricing period, recyclers will be anxious to see whether per-ton pricing falls further yet, which, if so, could push it below the prices that were being received in January of this year.
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),