August’s ferrous scrap market has officially posted, with Chicago continuing to see a divide between prime and obsolete grades. Prime scrap remained steady, while several obsolete grades moved lower.
The market came in slightly stronger than early expectations. Mills had been pushing for larger decreases on Shredded Scrap and Heavy Melt, but Chicago ultimately saw more moderate declines. With several mill maintenance outages planned for the coming months, demand and market conditions will remain important factors to watch heading into the fall.
Chicago’s Ferrous Scrap Market
In Chicago, August pricing continued to reflect the divide between prime and obsolete grades. Prime grades, including Busheling and Bundles, remained steady as healthy mill demand continued to support pricing. At the same time, Heavy Melt, Steel Turnings, and Shredded Scrap declined $10 per gross ton. Plate & Structural, followed prime grades, with no price change for the 4th consecutive month.
The market ultimately came in slightly stronger than early expectations, as mills had been pushing for larger decreases on several obsolete grades. The continued gap between prime and obsolete scrap remains a key theme as mills maintain stronger demand for prime material while taking a more cautious approach to obsolete grades.
Prime Grades. Prime scrap continued to show strength in August, with Busheling and Bundles once again maintaining the previous month’s pricing. Limited generation and steady demand from domestic mills have helped keep prime grades supported, even as overall scrap buying has become more cautious.
Prime material remains especially important to mills looking for higher-quality metallic inputs, which has helped protect pricing from the broader softness seen elsewhere in the market. Despite expectations that mills could test lower offers during the August buy, prime grades held firm and continue to be one of the strongest areas of the Chicago scrap market.
Obsolete Grades. Obsolete grades faced broader downward pressure in August, with Heavy Melt, Shredded Scrap, and Steel Turnings all moving $10 per gross ton lower. Mills entered the month targeting more aggressive decreases, but the Chicago market ultimately settled with more moderate declines than initially expected.
Export activity may have helped limit some of the downward pressure, while mills continue to manage inventories ahead of planned maintenance outages in September and October. Plate & Structural remained steady, but the overall softness in obsolete grades continues to highlight the difference between prime and obsolete scrap heading into the fall.
“Prime scrap continues to hold its ground, while obsolete grades are seeing more pressure. With several mill outages coming up this fall, we’ll be watching demand closely as we head into September,” said Lou Plucinski, President of BL Duke.
Chicago’s Non-Ferrous Scrap Market
Aluminum. Aluminum scrap pricing weakened over the past month following a correction in primary aluminum prices. Prime grades saw the most pressure due to their close connection to the LME, while secondary grades remained comparatively stable. Demand remains mixed, with consumers largely purchasing only what they need for immediate production.
Stainless Steel. Stainless-steel scrap remained relatively stable over the past month, with only modest price movement. Steady mill demand and slightly stronger nickel prices have provided support, although cautious purchasing and abundant global nickel supply have limited significant gains. The near-term outlook remains neutral to slightly bullish.
Copper. Copper scrap remained exceptionally strong over the past month, with values continuing to rise alongside COMEX copper futures. Tight global supply, strong industrial demand, and continued investment in data centers, grid infrastructure, and electrification have helped support the market. The near-term outlook remains bullish, with copper scrap pricing expected to stay well supported.
Let’s Connect
We’ll work hard to earn your business — and even harder to keep it.