US domestic
scrap prices may have settled up during both the March and April buy-cycles, but as recently as two weeks ago, some sources close to SteelOrbis were skeptical that there was room for additional price firming.
In our last report two weeks ago, some sources close to SteelOrbis were indicating a belief that
US domestic
scrap prices in the Midwest and possibly the Ohio Valley could trend neutral to slightly down. East coast sources at that time, however, were slightly more optimistic due to upticks in ex-
US scrap cargo booking prices to Turkish steelmakers.
Today, market sentiment is trending more optimistic.
East coast sources feel the market is poised for another increase, and while some have gone so far to state a belief that “prices could be up by as much as $50/gt, the close you get to the docks,” the larger consensus is that East coast pricing will settle up in the $20-$30/mt ($20-$30/gt) range.
April East coast
scrap prices settled at approximately $218/mt ($215/gt) for HMS
scrap, $238-$244/mt ($235-$240/gt) for busheling
scrap and $254-$264/mt ($250-$260/gt) for shredded
scrap“Recent Export bulk sales are for shipment late June and early July which extends the strength of the market,” another source notes. “The exporters will be vacuuming up tons to fill vessels and the domestic mills will have to make decision of whether to play in the sand box or not.”
Midwest and Ohio Valley sources now feel that
scrap prices in that region could settle up between $10-$20/mt ($10-$20/gt) due to favorable conditions within the
US domestic steel market.
April Chicago
scrap prices settled at $269/mt ($265/gt) for both shredded and P&S
scrap“Steel price increases are sticking and tariffs/duties have taken a lot of import tons out of the market,” one source said. “Domestic flats mills’ order books are full so they will have to pay up to get their fill. Longs mills will have to follow suit if they want to get their share.”
US scrap will begin trading early next week; May
scrap prices are expected to settle between Wednesday and Friday.