Although predictions for scrap prices this month have slid further downward over the last week, sources tell SteelOrbis that the market should not “underestimate US mills” and abandon the idea of a possible price increase entirely. If shredded scrap prices slide by $20 per ton or more, mills might temporarily shelve an official price increase, but sources believe mills will maintain their objective of firming up prices by quietly refusing deals and in some cases, quoting higher up the spot range for certain customers.
Most spot transactions are still taking place in the long-stagnant range of $27.00-$29.00 cwt. ($540-$600/nt or $595-$640/mt) ex-mill, with a slight improvement in activity as sources report dwindling interest in imports in light of the recent trade case petition against Turkey, Japan and Taiwan. While there was a slight bump in import activity immediately following the petition, bookings are expected to slow until preliminary margins are announced in November.