Scrap Posts Final for June

Scrap Posts Final for June

June Chicago Shredded Scrap posted final late Friday at no change from the previous 2 months at $430/ton. The sideways posting was widely expected going into the trade with ample scrap supply available and demand staying relatively stable. With a stable raw materials cost structure, mills will face headwinds trying to increase pricing further, as buyers will be quick to point out that the increased spread will put pressure downstream on a market that is already feeling the pain of inflation. At the same time, supply remains tight on rebar, so mills will struggle to resist the urge to benefit accordingly.

We will continue to keep you posted on events in the rebar market.