Prices within the US East Coast scrap market have settled down for the second month in a row and many are wondering if the market has finally reached bottom. SteelOrbis previously reported that for the month of July, shredded scrap transactions in this region settled down from $280/mt to $260/mt, while prices for HMS I/II started at $250/mt but settled down to $235/mt. For the current month, HMS I/II prices have fallen to approximately $195-$200/mt while shredded scrap prices have settled at approximately $230/mt.
Sources close to SteelOrbis have said that mills’ scrap inventory levels continue to be healthy and that there “just isn’t a lot of demand. When you take that and combine it with the fact that export prices really haven’t changed much it’s all put some pressure on the market.” Other sources close to SteelOrbis have pointed out that this trend is not unique to the East Coast. Scrap prices in other areas of the US have also settled down between $25-$30/mt depending on the region and the grade, noting that high scrap inventory at the mill level is not unique to the East Coast.