US scrap buying activity has been scattered over the past week and many mills have not yet secured all of their necessary scrap; therefore, scrap prices for January haven't officially settled, but are already showing an increase from December. However, the scrap price increase this month, which was predicted to be as high as $30-$50/lt, is proving to be more moderate. According to sources, many scrap dealers held back when selling scrap in early December in anticipation of substantially higher prices this month. As a result, there is more scrap available than expected, preventing prices from spiking as much as was previously anticipated.
Scrap dealer sources have indicated to SteelOrbis that there are still a few major mills that have yet to buy scrap this month, and depending on how significant their purchases are, scrap prices could increase again this week. But so far on the East Coast, busheling prices have increased about $20-$25/lt to $515-$520/lt ($507-$512/mt); shredded scrap prices are up $25-$30/lt to $470-$475/lt ($463-$467/mt); and HMS I prices are up approximately $15/lt to $415/lt ($408/mt).
Meanwhile, in the US Midwest, busheling prices have increased about $20-$30/lt to around $520/lt (512/mt); shredded scrap prices are up $30/lt to $470/lt ($463/mt) while HMS I prices increased about $15-$20/lt to $425/lt (418/mt).