Published by:Lisa Gordon<>
21 Apr 2025 @ 15:53 UTC

US ferrous scrap sellers are bracing for obsolete grade prices to fall, as a steep drop in export selling prices has made it clear there is too much material around and mills have no competition. An April 18 sale sobered the outlook, when a Turkish mill paid $331.50 per tonne for an 80:20 mix of No1 and No2 heavy melting scrap off the US east coast.
Comparably, the same material was selling for $380 per tonne – or $48.50 per tonne more—one month prior on March 17.
Export and domestic prices do not move dollar per dollar with each other but they generally trend up or down together. In up months, when one party pays more, the other party has to pay more or risking losing tonnage.
Along the East Coast, Philadelphia docks have been lowering their purchase prices on a weekly basis.
While obsolete grades like No1 heavy melt and shredded scrap seemed destined to drop in the May trade, some sources suggest that prime scrap could hold up better.
The way Turkey is going, there is $20 per gross ton to give back in May for shred and cuts, but I think there is a chance for prime to stay sideways, a prime scrap seller said.
The 10% tariff on pig iron really shifts favor to prime scrap, the prime seller said.
Pig iron, which was $475 per tonne, is now $522.50 per tonne (or $530.86 per gross ton) adding the $47.50 per tonne tariff at 10%.
No1 busheling, delivered to the mill, Chicago is $460 per gross ton, which makes it $70.86 per gross ton cheaper than pig iron.
The tariff uncertainty is also disrupting prime scrap generation from auto makers such as Stellantis, which temporarily laid off 900 workers at five stamping plants where the scrap is generated.
US Midwest and Ohio Valley shredder feed prices dropped in the week to Monday April 21, with each region dropping by $2.11 per gross ton and $1.60 per gross ton, respectively.
Southeast shredder feed prices bucked regional trends, increasing by $2.04 per gross ton week on week.
Fastmarkets assessed the steel scrap shredder feed, fob Ohio Valley at $188.86 per gross ton on April 21, down by 1.10% from $190.97 per gross ton on April 14.
Fastmarkets assessed the steel scrap shredder feed, fob Midwest at $215.07 per gross ton on Monday, down by 0.74% from $216.67 per gross ton on April 14.
Fastmarkets assessed the steel scrap shredder feed, fob Southeast at $156.80 per gross ton on April 21, up by 1.32% from $154.76 per gross ton on April 14.