Through August, SteelOrbis reported an expected increase in US domestic scrap prices during the September scrap buy cycle, supported by both domestic and export demand.
As the month begins on a Friday, trading is expected to begin and end after the Labor Day holiday next week. According to sources, US domestic scrap prices are expected to increase $20/mt in the Midwest and $20-30/mt on the East coast as exporters are competing with domestic mills and actively seeking scrap volumes. Exporters are reportedly actively buying scrap throughout the East coast region to meet demand from export deals. Depending on region, sources report exporters increasing buying prices up $10-15/mt through the week in an effort to attract material. One source stated, “Exporters are still aggressive for scrap.”
The same source added, “Domestically we expect spotty demand in the East coast as some mills are running stronger than others and a few have some down time in September due to planned maintenance.” A separate source noted that while prices are expected to move up in September “no extreme runaway prices are likely.”