US domestic East coast scrap prices, which settled at approximately $213/mt ($210/gt) for HMS I scrap, $244/mt ($240/gt) for shredded scrap and, $254-264/mt ($250-260/gt) for busheling scrap during the June buy-cycle have trended downward again during the July buy-cycle.
East coast export scrap prices have been subject to hefty downward pricing pressure, as ex-EU and ex-Baltic scrap sales to Turkey dominated the market for the first week in July; Sources close to SteelOrbis have confirmed this trend has spilled into the domestic market.
| July East Coast Pricing | (as of 7/8/2016, delivered in region) |
| HMS 80:20 | $188/mt ($185/gt) |
| HMS I | $198/mt ($195/gt) |
| Shredded | $229/mt ($225/gt) |
| Busheling | $254/mt ($250/gt) |
| P&S | $203-208/mt ($200-$205/gt) |
Experts close to the market have informed SteelOrbis that while overall transactions are low, activity is as expected due to the annual summer slowdown, adequate inventories at mills, and mills’ slight buying hesitation given the price corrections that are anticipated in various finished steel products.
In the Ohio Valley and Midwest, SteelOrbis has been informed that settled pricing for July is expected to trend down $10-$20/mt ($10-20/gt) on cut grades and sideways on prime. The Ohio Valley and Midwest regions settled at $259-269/mt ($255-265/gt) for shredded scrap and $284-295/mt ($280-290/gt) for busheling scrap. Shredded scrap is expected to fare better in areas with a dense presence of integrated mills.
Ohio Valley and Midwest prices are expected to settle by early next week. Buying transactions were delayed awaiting export sales results post the Independence holiday on July 4th.