US scrap prices have gone up approximately $65 to $75/long ton ($63.97 to $73.82/mt) in the first week of January due to continued rising domestic scrap demand and tight scrap supply.
When compared to early November prices, East Coast busheling and shredded scrap prices have increased sharply by approximately $75/lt ($73.82/mt) and HMS I prices have also jumped by approximately $65/lt ($63.97/mt) in the beginning of January. Currently, East Coast busheling scrap prices are in the level of $510 to $520/lt ($501.95 to $511.79/mt), shredded scrap prices are at $470 to $480/lt ($462.58 to $472.42/mt), and HMS I prices are between $445 to $455/lt ($437.97 to $447.81/mt).
The US scrap market has continued to stay strong with increasing demand and tight supply. Domestic mills' scrap demand has kept rising after the New Year, resulting in low scrap inventories and stimulation in scrap purchasing activities in the domestic market. Market sources mentioned that industry players underestimated steel demand in the US and domestic mills need more scrap for steel production in order to meet demand. On the other hand, scrap availability remains tight; there is limited scrap supply in the market, and the harsh winter weather is negatively affecting scrap flow. For the time being, it is very difficult to acquire scrap. With the increasing scrap demand, declining scrap flow, and firm scrap export prices, domestic scrap prices have continuously escalated since early December, and it is possible that US scrap prices will go up further by at least $25/lt in February.
As for pig iron, prices are currently at $530 to $540/mt CFR Nola, representing an increase of approximately $55/mt from a month ago. Some Brazilian and Russian cargo offers have even reached $550/mt CFR. With limited pig iron supply and growing pig iron production cost, such as rising iron ore prices, pig iron prices are expected to go up next month as well.