Although
US domestic mills haven’t quite delved into their November
scrap buys, mill reps seem to be active in soliciting offers. “Everyone is saying they’re not buying until next month,” according to one Midwest-based source, “but at this point it seems like mills are actively trying to drive prices down.”
Those within the Philadelphia reason seem to have their fingers crossed at down $10/lt, although “no one would be surprised if things came down $20/lt.” Sources in the Ohio Valley also seem mixed on the exact number, with some saying between down $10-$20/lt while others seem to think down $10-$30/lt is the more realistic range.
Ultimately, October’s East Coast / Philadelphia prices for HMS I/II and shredded
scrap, previously seen at $315-$320/lt and $347-$352/lt, and busheling
scrap prices of $390-$395/lt, are likely to come down. The same goes for prices in the Ohio Valley (Pittsburgh/Cleveland), where prices for HMS I/II and shredded
scrap settled at $360-$370/lt and $390-$400/lt, respectively, for October buys. This month’s prices for busheling
scrap, at $420-$430/lt, are also expected to erode.
Dealer sources say that busheling
scrap seems to be a little more scarce than shredded
scrap, of which “there seems to be quite a lot.” HMS I/II is also a little more scarce, they say, but how this will play into pricing has yet to be known.