Additional regions settle in the US domestic scrap market in June

According to sources close to SteelOrbis, the Pennsylvania and Ohio regions have settled scrap pricing for the June buy-cycle. Scrap prices moved down across the various grades except for busheling scrap.

Sources note that busheling remains in strong demand and tight supply. Industrial scrap output from the automotive industry is expected to decrease as a result of planned maintenance schedules through the summer. Additionally, some sources believe that the regularly scheduled maintenance periods may be prolonged by some automakers given their high vehicle inventories and slower than anticipated sales through 2017.

Shredded scrap was affected by the dampened demand in the export markets which resulted in higher supplies of the grade inland, while HMS I and P&S were affected by a slight reduction in demand. Demand was not reduced due to a slump in mill production, according to a source, but due to an extremely tight inventory management strategy adopted by mills.

Assessing preliminary expectations for the July buy-cycle, one source stated, “I do not expect we will see any further deterioration in July.” Another source commented, “With mills seeking to achieve a price increase on flat steel plus consideration of the necessary collection prices to continue attracting adequate scrap feedstock, I expect another repeat of June next month.”

*Top number denotes change from the bottom of the previous range and bottom number denotes change from the top of the previous range.