Players within the US domestic scrap market have been on quite the roller coaster ride since the beginning of the year, although dealer sources in some areas of the country think “the bleeding may have finally stopped.”
Ohio Valley Pittsburgh/Cleveland area sources seem to think current prices, holding at $230-$240/lt HMS I/II and $260-$265/lt for P&S scrap could stay at soft-sideways for April buys. Although there may be a few outlier transactions that take place slightly above the current range, the market is expected to remain mostly lateral.
Looking to the East Coast / Philadelphia region, current prices, at $220-$235/lt for HMS I/II and $235-$240 for shredded scrap are expected to hold steady; busheling may settle down to $240-$250/lt range for April buys due to increased availability. Others, though, feel it’s too soon to make any calls on where the market will wind up next month, because “every day it’s a different story.”
East Coast dealer sources continue to report that inflow into the yards is down; part of that relates to bad weather and winter storm conditions and the other relates to cheap prices being paid to scrap collectors. And while in the past this would have set the state for upticks in prices, “the mills just aren’t melting,” according to another source, who points to decreased mill capacity rates. Service and distribution centers have been stringent with their order placing, as the downward, volatile pricing trend for US flat rolled steel products has many holding off on booking anything until they absolutely have to.