Historically ferrous scrap prices are soft in July and this year is no exception. Chicago’s ferrous scrap market settled down $10 per gross ton on cut grades and steel turnings and $40 per gross ton on prime grades, including bundles and busheling. There is an overhang in supply due to the closure of the Illinois River and the steep price decline on prime grades is a clear signal that the busheling drought has ended.
On the other hand, demand for non-ferrous materials has increased in July due to the reopening of the economy and the automotive sector. Mill and smelter demand has increased and consumers that have been quiet for the first half of the year are now looking to strike deals.