Although many segments within the
US domestic steel industry are facing their own unique challenges, players within the
US domestic
scrap market seem to have a bit of optimism.
Inflow into the yards had been hampered by the approximate $40-$60/lt drop in prices (depending on the region) that has taken place since October, according to sources, and inclement weather has continued to take its seasonal toll. Another consideration point relates to
US export prices to Turkey, which have been on an upswing since the beginning of the month.
Some believe that January
scrap prices could be up as much as $20/lt, depending on the region and grade (it’s rumored that there is quite a bit of busheling
scrap available in the Ohio Valley, which may have those prices holding mostly sideways), while others say they are taking a more wait-and-see approach before making a firm prediction. What is certain, however, is that the current December East Coast / Philadelphia transaction ranges of $295-$300/lt for HMS I/II, $310-$315/lt for shredded and $360-$365/lt for busheling, and Ohio Valley prices of $325-$330/lt for HMS I/II and $370-$375/lt for busheling, are not likely to remain stable for January buys.