What will May bring to scrap metal prices?
If everything goes as planned, May will bring a drop in scrap prices once again. On Monday, the President and CEO of Steel Dynamics, Mark Millett commented on the anticipated May drop in prices along with his outlook for the year. On the company’s earnings call, he stated, “We are looking at stable scrap pricing for the rest of the year, which is supportive of healthy metal margins… It may soften a little bit this coming month – around $10 to $20 [per gross ton] – but not a massive move.” While this may not be the best of news for the short term and even the year, he did add, “Ferrous scrap availability has been steady, with a strong automotive sector generating more than ample supply of prime scrap. We expect seasonal flows of cut and shredded grades will continue to pick up and outpace demand.” With the almost certain drop coming in May, hopes of scrap prices going higher into the more demanding summer months still remains a reality with continued economic strength.