Scrap Prices for September Forecast Sideways to Slightly Lower

Steel Market Update sources are forecasting slightly lower shredded scrap prices in the Midwest and Ohio Valley as we prepare to move into September. Prime grades (such as #1 busheling) are forecast to be sideways to down slightly and cut grades are forecast to move sideways across most areas of the country.

This is what one of our East Coast sources had to say this week:

“We expect shred to move mainly sideways in the Mid-Atlantic and perhaps sideways to down $5 in the south and a bit more in the OH Valley. Export along the east coast has strengthened during August. Despite fewer trades in the last week, export prices have remained firm. At the same time, demand in the OH Valley continues to be slightly off from normal levels. Mittal Cleveland will take down a blast furnace for maintenance for several weeks in September, and Republic’s Canton mill still has shippers held up because of some electrical problems with a transformer they’ve experienced in August (though I think they are beginning to release some shippers now). Cut grades remain tight and should be expected to move sideways across most regions, though maybe upward in the Mid-Atlantic to compete with export and Claymont’s new premium 3’ grade. Primes may move down slightly as some mills buy more shredded at a lower price.”