Ferrous market stability expected as recycling CEO predicts balanced supply and demand for summer months.
The ferrous scrap market will likely experience a balanced supply and demand throughout the summer, according to Sean Dailey, CEO of metal recycling firm Foss Recycling.
This stability follows recent price fluctuations, offering recyclers a clearer outlook for inventory management and sales strategies amidst ongoing economic pressures and evolving export dynamics.
Ferrous Market Outlook: Stable Pricing Ahead
Dailey’s assessment, shared at the Institute of Scrap Recycling Industries (ISRI) Gulf Coast Region meeting in Mobile, Alabama, indicates a shift from the volatility seen earlier in the year. He projected pricing for shredded scrap will remain within a narrow range, specifically $350-$380 per ton in the June-July timeframe, with plate and structural (P&S) scrap trading at a $20-30 premium.
- Foss Recycling operates 17 locations across North Carolina and Virginia.
- Shredded scrap prices are forecast to hold between $350 and $380 per ton for June and July.
- P&S scrap commands a $20-30 per ton premium over shredded material.
- Export demand, particularly from Turkey, remains a critical pricing factor, currently at $375 per ton CFR (Cost and Freight).
- Domestic steel mills have reduced production, impacting overall scrap consumption.
Domestic Demand Weakness Offset by Export Strength
While domestic steel mill demand has softened, with some mills reducing operating rates, strong export markets are providing crucial support. Turkey, a key destination for US ferrous scrap, continues to purchase material, maintaining a floor under prices. This dual market dynamic prevents a significant price collapse, even as domestic consumption lags.
What This Means for Recyclers
Recyclers should anticipate consistent pricing for ferrous grades through summer, enabling more predictable inventory turns and improved operational planning. Focus on optimizing logistics to meet export demands and manage domestic mill contracts effectively will be critical. Monitoring Turkish demand and domestic steel production rates will provide early indicators of any market shifts.
