Platts reported that prime industrial ferrous scrap has softened by USD 35 to USD 40 per long tonne from highs near USD 900 per light tonne as more scrap processors finished their August 2008 transactions for shredded ferrous scrap within the Platts assessed range, leaving the assessed price for shredded scrap delivered to Midwest mills at a midpoint of USD 565 per light tonne.

The downward movement of prime industrial scrap mirrors pig iron price drops of approximately the same magnitude. Pig iron is now said to be selling for USD 900 per tonne Port of New Orleans, down from previous highs of USD 930 per light tonne to USD 940 per light tonne in July 2008.

While August 2008 ferrous scrap prices are softer, sources expressed caution that the market could snap back as colder winter weather curtails inbound scrap flows or if Turkish mills vigorously return to buying US scrap exports.

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