RMDAS Scrap Pricing Climbs Again

For the second straight month, per-ton pricing for ferrous scrap moved up throughout the United States in September. Pricing moved up from $12 to $22 per ton, depending on the grade and region. Prompt industrial composite grades experienced the biggest bump, moving higher by from $15 to $22 per ton. (Click here to view the prices -- September Prices)

According to figures compiled by the Raw Material Data Aggregation Service (RMDAS) operated by Management Science Associates’ (MSA), Pittsburgh, mill buyers paid well over $300 per ton for prompt scrap throughout the United States in September. (click here to view a larger picture of chart)

Average per ton prices paid by steel mills for the prompt composite grade (#1 busheling and bundles) ranged from $323 to $328 per ton, averaging a $16 increase in September versus August. Number two shredded scrap also fetched higher average pricing in September, with mills still paying less than $300 for the grade, but heading in that direction with average purchases of $293 per ton.

Number One Heavy Melting Steel (HMS) remained several dollars lower per ton, with buyers paying in the $254 to $271 per ton range.

Steel production globally and domestically remained healthy, while scrap processors reported a healthy but not overwhelming flow.

One recycler in the Mid-Atlantic states expressed concern that the bull scrap market of the past three years may have largely drained the surrounding countryside of much of the obsolete machinery and old steel roofing and sheds that have helped meet demand previously.

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.