CMC: Scrap steel prices are up

By Dave Hannon -- Purchasing, 3/26/2008 9:54:00 AM

Commercial Metals Co. said this week that prices for the scrap metals it sells were up significantly in the quarter ended Feb. 29.

In a company statement, CMC said its recycling business saw average ferrous scrap sales prices for the quarter increase $73/short ton to $287 and the average nonferrous scrap sales price for the quarter was $2,780/ton, 2% higher than last year's comparable quarter. President and CEO Murray McClean said “December ended excess inventory hangovers and the quarter saw an unanticipated $97/short ton spike in ferrous scrap pricing followed by an $85/ton increase in rebar and merchants by quarter end.”

Purchasing.com forecast an increase in first quarter scrap prices late in 2007 (see Steel scrap prices to rise in the first quarter).

McClean says that for the rest of 2008, “supply of steel products in global markets is likely to be significantly impacted by the Chinese cut back in steel exports. The recently announced contract iron ore prices for 2008 (up 65% plus) should support higher pig iron and ferrous scrap prices in global markets."