After US scrap prices went up approximately $20/long ton ($19.68/mt) in August, prices have increased by another $20 to $40/lt ($19.68 to $39.37/mt) in September due to short scrap supply, low inventory level and high scrap export prices.
When compared to early August prices, East Coast busheling scrap prices have gone up approximately $25/lt ($24.61/mt) to the range of $445 to $455/lt ($437.97 to $447.81/mt) - some regions registered an increase of as much as $40/lt ($39.37/mt), while shredded scrap prices have raised $35/lt ($34.45/mt) to the level of $375 to $385/lt ($369.08 to $378.92/mt) and HMS I prices have gone up $20/lt ($19.68/mt) to $350 to $360/lt ($344.47 to $354.31/mt) in the beginning of September.
With the uncertain market condition, domestic mills do not want to hold on to large scrap tonnages, so their inventories have remained at low levels. Nevertheless, the scrap supply is still in shortage and domestic mills still need to continue to buy scrap in order to meet the capacity rate, therefore scrap demand is exceeding supply for the time being. On the other hand, due to the sluggish construction market, less scrap is being generated, and it is expected that the tight scrap supply situation will last for the rest of the year. Therefore, scrap suppliers are trying to push the prices up aggressively for September.
Despite Turkey's Ramadan holiday, there were some bookings to be seen on the East Coast, and the scrap export prices have stayed around the high level of $405/mt CFR, further supporting the domestic scrap price increase for September. By the end of this week, when Ramadan ends, it is anticipated that the Turkish mills will return to the market and purchase scrap for October shipments.
As for pig iron, there has not been many transactions concluded in the market due to low demand from the domestic mills. Prices have stayed the same at $450 to $460/mt CNF Nola.