Sharply curtailed scrap supplies in US expected to support domestic prices into September

Friday, 19 August 2016 21:52:52 (GMT+3)   |   San Diego
       

Market sources have informed SteelOrbis that US domestic scrap prices in September are presently expected to trend lateral into September due to a tightness of scrap supply.

While various sources report continued weak domestic demand going into September, scrap inflow has fallen by as much as 30 percent in the past two months as scrap collectors are trying to outwait declines in peddler pricing while also facing decreased productivity due to the summer heat.  Additionally, SteelOrbis has learned that even some demolition companies are limiting inventory offers to local scrap firms hoping for price increases at the collector’s level in the near future.

In terms of how ex-US scrap bookings to Turkish steelmakers will impact scrap pricing into September, that has yet to be known. Some sources close to SteelOrbis believe that Turkish mills need scrap, which should, in theory, bolster buys into September.
On the other hand, the overall weakness within Turkey's finished steel market has others questioning whether mills in that country can afford to pay higher prices for ex-US scrap.

August scrap prices in the East Coast settled for HMS I/II 80:20 scrap at $178-188/mt, HMS I scrap at $193-198/mt, shredded scrap at $224-229/mt, busheling at $239-245/mt, and P&S at $203-208/mt, delivered to regional mill.

The Ohio Valley settled for HMS I scrap at $213-218/mt, shredded scrap at $244-249/mt, busheling at $274-284/mt, and P&S at $244-249/mt, delivered to regional mill.

The Midwest settled at $229-239/mt for HMS I, at $244-249/mt for shredded scrap, at $264-269/mt for busheling, and at $242-244/mt for P&S scrap, delivered to regional mill.

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