Sources close to SteelOrbis say they expect that October scrap prices are likely to settle up by $30/gt on primes, and by $20/gt on cut grades and shredded scrap during this month’s buy cycle. And while some had questioned whether today’s announcement from Cleveland Cliffs, which indicated the mill is establishing a new minimum base price of $50 cwt. ($1,102/mt or $1,000/nt), for HRC, would impact this month’s scrap pricing, market players within that arena say “no.”
“The HRC increase announcements are heavily related to 2024 HRC contract sales,” a source said. “The steel operating rate has not moved up an iota in the past two weeks. I think scrap is leaning stronger, but until we see operating rates move higher increases are not in the immediate cards.”
Scrap prices are expected to settle on Wednesday or Thursday of this week.