Iron Castings - Jul 16, 2013
The Scoop on Scrap
By Tony Lewis
Waupaca Foundry, along with the rest of the industry, is watching several global factors to understand what ferrous scrap demand and pricing will do next.Unfortunately, there is no clear trend other than continued market volatility. As shown above, scrap prices have trended down since mid-2011, but the price swings from month to month are the real points to watch. In just two months' time, scrap prices can drop and then rise by more than $100 per ton. These swings are caused by US export demand or lack of export demand.Factors that impact demand include:
- Global currency exchange rates
- Economics and demand in developing countries
- Steel industry demand (they are the largest scrap users)
Steel scrap will continue to flux with the changing demand for exports and the steel industry's consumption. Therefore, Waupaca expects scrap pricing to remain volatile for months to come.Waupaca Foundry continually monitors market fluctuations to ensure continuous supply of ferrous scrap on behalf of its customers.