The ferrous scrap market in the United States suffered a large downward correction during the July trade, and more downside might be in store for August given a supply overhang, only marginal demand and depressed pricing for finished steel products.
"The July trade is a reminder of how bad things really are in this country. May and June were only up on supply concerns," a shredder source said. No1 busheling saw the biggest decline of all grades, with prices falling by $40 per gross ton in every region assessed by Fastmarkets, making this an unusual month where pricing trends in every area moved in sync.This marks a 180-degree turn from May, when mills were blindsided by prices for No1 busheling jumping by $40 per ton in Chicago due to a severe shortage.The July drop was not unanticipated. After the June trade, there was a consensus that the ferrous scrap market had likely peaked and would only see further gains...