US domestic scrap prices recover November drops

US domestic scrap prices have surged from $25/lt to as much as $50/lt, as mills flooded the market to buy scrap. Sources tell SteelOrbis that many mills were intent on keeping low year-end inventories and therefore made smaller scrap buys in November, which coincided with a weak domestic finished steel demand environment for both flat and long steel products, and a soft export scrap market early in the month.  This led many to speculate that scrap prices would once again fall in December, but domestic steel production rates rose throughout most of last month according to the American Iron and Steel Institute (AISI), demand held firm and even increased for flat steel products, and the export scrap market rebounded as well.

Furthermore, scrap flow and scrap collection is down substantially from a month ago with winter setting in, and pummeling many upper Midwest and East Coast regions with rain and snow. Scrap dealers have also been reluctant to sell scrap this month, under the anticipation that domestic scrap prices will once again spike in January, leading them to sell "enough scrap to keep the lights on, but not a ton more" according to one East Coast dealer. As a result, domestic HMS I and shredded scrap prices are up an average of $30/lt in both the East Coast and Midwest in December, while busheling scrap prices rose as much as  $50/lt in some parts of the Midwest and about $40-45/lt on the East Coast.

 

US domestic East Coast	Long Ton (lt)	Metric Ton (mt)	Change from early November prices
Busheling Scrap	$495-$505	$487 to $497	↑ $45 /long ton
Shredded Scrap	$445-$450	$438 to $443	↑  $30-$35 /long ton
HMS I	$395-$405	$389 to $399	↑ $25-$30 /long ton

US domestic Midwest	Long Ton (lt)	Metric Ton (mt)	Change from early November prices
Busheling Scrap	$500-$510	$492 to $502	↑ $50/long ton
Shredded Scrap	$440-$445	$433 to $438	↑ $30/long ton
HMS I	$410-$415	$404 to $408	↑  $30/long ton