Recycling Today reported that processors and shippers of ferrous scrap enjoyed another month of gains in value in September, as mills paid an average of from USD 15 to USD 20 more per tonne on the spot market.
As indicated by transaction pricing compiled by Management Science Associates Inc for its Raw Material Data Aggregation Service, mills paid an average of USD 339 per tonne for prompt industrial scrap on the spot market, an increase of USD 21 as compared to the USD 318 per tonne paid in August.
Prices were up comparably for shredded scrap and number 1 heavy melting steel, with pricing showing across the board gains for all grades in all regions. The upward price movement continues a three month trend that started in July.
There were few observable differences regionally in buying and selling behavior as average pricing moved upward from USD 15 to USD 24 for across all grades in all three regions. The biggest single gainer was the USD 24 per ton more paid for prompt grades in the RMDAS South region, which consists of mills in Alabama, Arkansas, the Carolinas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, Tennessee, Texas and western Virginia.
The prompt grades US average pricing of USD 339 per tonne paid by mills in September is more than double the USD 167 per ton that mills were paying in April of 2009. While American manufacturing and steelmaking activity remains sluggish, the rest of the world continues to place significant orders for ferrous scrap. Steelmakers in China remain the most active, with that nation having produced 52.3 million tonnes in August.
The Raw Material Data Aggregation Service Ferrous Scrap Price Index is based on data gathered from a statistically significant compilation of verified ferrous scrap purchase transactions.