RMDAS Scrap Pricing Shows Slight Decline

Ferrous scrap pricing showed less volatility in October after two months of sizable price hikes. Most grades in most regions declined in the average mill buying price. The biggest mover was a decline of $10 per ton for #1 HMS in the North Central/East region, while the greatest stability was in the South, where no grade changed by more than $2 per ton. (Click here to view the prices -- October Prices)

The amounts paid by steel mills in the United States for ferrous scrap in October could be described as flat, but as plateaus go this one is fairly high in altitude.

According to data collected for the Raw Material Data Aggregation Service (RMDAS) of Management Science Associates, Pittsburgh, domestic mills paid an average of $262 per ton for #1 Heavy Melting Steel and $323 per ton for #1 busheling and bundles (grades that make up the RMDAS Prompt Industrial Composite index).

October buying served to bring prices being paid by mills in the RMDAS South region closer in line with prices being paid in the other two regions (labeled as North Midwest and North Central/East by MSA. Those wishing to see a map of the regions can go to available at http://rmdas.msa.com.)

While prices paid in the South only declined $1 or $2 per ton (or even gained $1 per ton in the case of the Prompt Industrial grades), average prices paid in the two northern regions dropped from $4 to $10 per ton in October.

The result brought the two northern regions to within $4 or less in per ton prices paid for Prompt Industrial grades and to within $5 or less for #2 Shredded Scrap.

Mill buyers in the South continued to see their biggest beneficial spread in the #1 Heavy Melting Scrap category, where they paid on average from $8 to $18 less per ton for that grade.

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.