RMDAS figures portray US recycled steel price boost

Ferrous scrap gained more value in the United States Midwest and South in late December 2024 and early January 2025 while prices in the more export-oriented Northeast rose by several dollars per ton less.

Mill buying transaction figures gathered by the Raw Material Data Aggregation Service (RMDAS) of Pittsburgh-based MSA Inc. show accepted bids for the No. 1 heavy melting steel (HMS) grade rising by the $30 per ton in the RMDAS South region from Dec. 21, 2024, to Jan. 20, 2025, compared with the previous time frame.

That price rise in the South, where buying comes largely from sizable electric arc furnace (EAF) mills found in that region, was the single largest for the three benchmark grades as measured in three separate RMDAS regions in the U.S.

In the RMDAS South and North Midwest regions, ferrous scrap rose in value by from $23 to $30 per ton for all three benchmark grades: No. 1 HMS, No. 2 shredded scrap and the prompt industrial composite busheling and factory bundles grade.

In the final RMDAS region, known as the North Central East, prices rose by a more modest $15 to $21 per ton in the late December to mid-January time frame. That region consists of mill purchases made in the New England states, Kentucky, Maryland, New York, Ohio, Pennsylvania, West Virginia, most of Michigan, Indiana excluding its northwest corner, eastern Virginia and the northeast corner of North Carolina.

While there is some EAF capacity in the North Central East statistical region, market conditions in that part of the country are more heavily dependent on bulk export shipments, plus purchases from the remaining basic oxygen furnace mill operators in the U.S.

The price rebound in the South means all three benchmark grades have their highest value in the country in that region this month.

The disparity is especially noticeable for the No. 1 HMS grade, which is frequently exported from the North Central/East region in particular. In the 30-day period ending this Jan. 20, mills in the South paid an average of $378 per ton for No. 1 HMS--$27 per ton more than buyers were paying in the North Midwest and $ per ton more than for purchases in the North Central/East.

As of the third full week in January, export-minded shippers are still awaiting signals from buyers representing mills in Turkey or the Indian subcontinent that they are ready to increase their U.S. buying activity.

A Davis Index report from Jan. 20 describes Indian mill buyers as “waiting and watching” to see whether the January price increases in the U.S. will hold in place in early February, although it did indicate one buyer was willing to pay about $2 per metric ton more for scrap compared with a previous purchase.

The same pricing and news service, on the same day, reported Turkish pricing for imported HMS scrap as “holding steady” at the start of the third full week in January. Perhaps more encouragingly for sellers, Davis Index writes, “[Turkish] mills require material for February shipment, and are anticipated to purchase some cargoes this week.”