There isn't much optimism anymore within the US domestic scrap markets; regions that had previously thought they'd see a strong-sideways trend for April aren't nearly as hopeful as they were in the middle part of March, when many believed the market had finally hit bottom.
Ohio Valley sources had believed that early buys could take place at up $10-$15/lt from March levels before finally settling back down to $230-$240/lt HMS I/II and $260-$265/lt for P&S scrap. "At this point we either have mills telling us they aren't buying or they're calling to cancel orders," according to one Ohio Valley source. Scrap inventories at the dealer level are "still pretty healthy", and some say they're concerned the market could trend down another $20-$30/lt "before this mess is all over."
Chicago sources have also indicated that mills in that region are stepping away from the market in April. This places prices in that region, previously at $220-$225/lt for HMS I/II and $240-$245/lt for busheling scrap at sideways, month-on-month. Scrap inflow is described as being "terrible", according to SteelOrbis sources, who say that the people who are out collecting the scrap just aren't bringing it into the yards to due to the low-prices being offered.
Looking to the East Coast / Philadelphia region, where prices have been trending at $220-$230/lt for HMS I/II and $235-$240 for shredded scrap are expected to firm for April, sources say this has "nothing to do with demand and everything to do with supply." East Coast yards continue to report their intake is "way off" for the same reasons it's not flowing into the yards in Chicago. Mills that need to buy will need to pay a bit more than they did in April, according to sources, although since mill capacity rates continue to decline, "no one is expecting big things."