In most
US regions,
scrap prices fell again last week, matching the declines from the prior month. On average, prime grade
scrap fell $30/mt, while HMS I and shredded
scrap fell roughly $20/mt. In many regions, busheling and bundles are now priced equivalent to shredded and P&S
scrap.
Due to the long-term nature of most contracts for busheling and bundles industrial grade flows remain relatively steady. In contrast, the supply of obsolete
scrap continues to dwindle. Similar supply reductions are expected next month as well due to falling prices to collectors', the negative impact of colder weather on intake, and fewer production weeks due to the holidays. Hence, the expectation expressed by several sources close to SteelOrbis is for
scrap prices to decrease $5-10/mt for prime and $0-5/mt for shredded and HMS I. One source close to SteelOrbis stated, "
US mills have slashed utilization rates, but they will hopefully uphold
scrap prices to give the market confidence. I am finding it difficult to tell, though, given the downward pricing pressure on their finished goods and year-end inventory planning at steel centers."
Scrap export demand and pricing levels are playing a substantial role in expectations for November
US domestic prices according to sources close to SteelOrbis. Export prices this week for ex-
US HMS I/II 80:20 encountered another uptick of $4/mt on the East coast with HMS I/II 80:20 at $219 CFR Turkey. The expectation is for
US scrap export pricing to remain strong as Turkey billet and
scrap import pricing is trending up along with their export offers for finished steel goods. On the West coast exports to Taiwan moved slightly upward $2-3/mt to $185-195/mt CFR to due to slight increases in freight costs from West Coast ports and tighter availability as sellers are limiting supply on expectation of upward movements.