US scrap prices trending sideways

After registering a slight increase in the beginning of the month, US scrap prices have held steady and are expected to continue trending sideways in February.

The US scrap market continues to be quiet due to the lack of demand, but at the same time, scrap supplies are staying level because of the cold weather as well as the auto and manufacturing industry production cutbacks.

Although $90 billion of the new US administration's economic recovery plan is slated for infrastructure projects, steel will not be significantly impacted in the short term, which means that domestic steel and scrap demand will most likely remain unchanged for awhile. Market sources expect US scrap prices will trend sideways throughout the first quarter and that domestic mills’ production and scrap buying will slowly resume in the second quarter of the year.

Current East Coast busheling scrap prices still range from $270 to $280/lt. Shredded scrap is sold for $260 to $270/lt, while HMS I prices range from $210 to $220/lt.

On the export side, Turkish producers are focusing on finished products sales and have slowed down their scrap purchasing activity this week. Ex-US scrap prices to Turkey remain unchanged at the level of $285/mt CFR for HMS I/II 80:20; $290/mt CFR for shredded scrap; and $295/mt CFR for P&S scrap.