US domestic scrap prices fell starkly in early October, due to faltering export prices and lagging domestic demand. October East coast HMS I/II settled at approximately $155/mt, while shredded scrap, which initially transacted at approximately $185/mt settled at approximately $165/mt.
SteelOrbis has since learned that market prices continue to be vulnerable to additional corrections, as many believe that November scrap prices could settle between $10-$20/mt below October levels. US domestic demand for finished steel products continues to be light due to hefty import arrivals and substantial inventory overhang.
Additionally, US domestic steel production levels have declined for the past four weeks and it’s believed that production levels are vulnerable to additional slippage. “The market is a mess right now,” according to one SteelOrbis source. “And in the absence of some major, unforeseen event that steadies supply and demand, scrap market prices aren’t likely to recover before the start of 2016.”