Earlier this month, the general consensus was that
US domestic
scrap prices would trend up between $5-$10/lt for September buys. And in fact, the first day that everyone was back at work after the Labor Day holiday weekend, one of the largest
scrap metal recyclers in the country told customers to be prepared: the increase was coming. But as the week moved on it became clear that prices were not going up; they remained sideways, which has left everyone scratching their heads. “The exact reason why really seems to be anyone’s guess,” according to one SteelOrbis source, “but until things start to become clearer I think everyone is going to tread cautiously.”
SteelOrbis sources in the East Coast /Philadelphia region say prices in that region have held neutral at $330-$340/lt for HMS I/II, $365-$370/lt for shredded
scrap and $390-$395/lt for busheling
scrap, while sources in the Ohio Valley (Pittsburgh/Cleveland) area say last month’s transaction ranges of $360-$370/lt for HMS I/II, $390-$400/lt for shredded
scrap and $420-$430/lt for busheling
scrap have sustained. There continues to be relative optimism in the market, although mill production capacity has tapered off slightly between late August and the first week of September. But for now, prices are expected to hold throughout September; when it comes to October, that’s still too soon to call.