US domestic scrap settles up on the East coast

While the rest of the US moved predominantly sideways during the September scrap buy-cycle, the US East coast was able to gain domestically due to the competition with export scrap demand. Initial expectations for the September buy-cycle were an increase of $20-30/mt across all scrap grades on the East coast and $20/mt inland, but those expectations faltered as mills sought to retain the previous month’s status quo and rumors of sideways offers inland began to spread early in the month. According to a source, “Scrap on the East coast went higher before the domestic market made its non-move.”

Exporters have been actively seeking scrap for fulfillment of bulk orders, therefore, exporters have been heard buying HMS 1 at prices up to $315-320/mt from “springboard” locations outside the region.

According to data obtained by SteelOrbis, East coast HMS I increased $15-26/mt, P&S increased $15-21/mt, and shredded increased $10/mt. The pricing for busheling scrap did not change due to limited transactions for prime grades in the region. A source noted that he sold a limited amount of busheling “at prices on the higher end of the August range” while another source noted his firm did not sell busheling scrap for September delivery.

*In mt terms, the top number denotes change from the bottom of the previous range and bottom number denotes change from the top of the previous change.