Another month, another round of ferrous scrap price decreases.
Pricing for ferrous scrap slipped an average of $50 per gross ton across all domestic regions in October continuing a trend of price degradation that began in late August.
Market analysts point to limited demand from domestic and offshore buyers as the main reason behind the pricing weakness. Steel mills continue to require very little scrap due to tepid demand from virgin steel producers and their end-use consumers. Global economic concerns also continue to plague the scrap complex. Inventory levels are thin, however, and ferrous scrap prices have most likely bottomed out.
Copper scrap pricing also witnessed decreases, though far less dramatic than that of ferrous. Aluminum also trended downward, albeit slightly.
These decreases in non-ferrous scrap will probably continue until the end of the year due to scrap dealers’ already massive inventories. Without a substantial increase in domestic or Chinese demand the non-ferrous slump looks set to continue.
Pricing for OCC (old corrugated containers) ticked upwards around $5 per ton. Pricing for sorted office paper, behaving much differently, dropped approximately $20 per ton.
Disclaimer – Prices and market related information shown has been obtained by many sources across many commodity markets. InStream has not verified the information beyond our sources. Information is based on assumptions and projections based on current market drivers. This information is provided as a service and InStream is not recommending action based on the market information provided and is not responsible for the direction of markets and/or results based on the data provided.