Scrap iron pricing edges upward.

Although the calendar was still turned to the August page, mill buying activity seemed to increase in anticipation of an end to the summer vacation season.

Ferrous scrap buyers showed enough interest in early August to move pricing up an average of about $10 per ton, with variations depending on the grade and the region.

According to figures compiled by the Raw Material Data Aggregation Service (RMDAS) operated by Management Science Associates' (MSA), Pittsburgh, in both northern regions mill buyers paid $16 per ton more for Prompt Industrial Composite grades. The smallest swing occurred for #1 heavy melting steel (HMS) in the North Midwest region, which increased in price just $3 per ton.

In August, per ton prices paid by steel mills in the United States ranged from $242 to $313 per ton. Number two shredded scrap fetched average pricing in a narrow range from $271 to $279 per ton, with mills in the South paying at the lower end of that scale.

Mills in the South paid the least, on average, for all there of the grades for which MSA releases data.

Scrap recyclers sense a bit more interest on the mill buying side as the end of summer nears. "The rise in prices seems demand-related to me," says one recycler in the Midwest. He also ventured that September pricing will see yet more increases, "especially in the prime grades."

The seasonal slowdowns in the manufacturing sector that may have prompted the flat summer market may be coming to an end. Mill buying activity seemed to increase in anticipation of an end to the summer plant shutdown and vacation seasons.

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In his particular part of the country, the Midwest recycler says flow of scrap also strengthened in August compared to July. "July was a bit slow, but things have picked back up, both with unprepared and industrial material," he comments.

The RMDAS Ferrous Scrap Price Index is based on data gathered from a statistically significant compilation of verified ferrous scrap purchase transactions.

RMDAS is a service of Management Science Associates Inc. (MSA), Pittsburgh. Those seeking more information about RMDAS can contact MSA's Ralph Pinkert at 773-588-1199 or via e-mail at [e-mail].