Activity within the US domestic scrap markets is still pretty quiet, and many say they’re already looking to what could unfold in May. Sources within the East Coast/Philadelphia, Pittsburgh/Cleveland and Chicago regions say April orders were “few and far between”, with a great number of mills having either cancelled previously booked-orders; others didn’t buy anything at all.
Inventories in Pittsburgh/Cleveland area are still pretty good, and it’s believed this will help hold that region’s pricing trend, at $230-$240/lt for HMS I/II and $260-$265/lt for P&S scrap, into next month.
Inflow in the Chicago region is slightly better than it has been due to seasonal factors, according to sources, and they also think May buys will take place at sideways price points, at $220-$225/lt for HMS I/II and $240-$245/lt for busheling scrap.
Philadelphia region prices, which were at $230-$235/lt for HMS I/II and $240-$245/lt for shredded scrap during April buys, should also hold steady when mills reenter the market next month.
“US Mills aren’t exactly thrilled that finished steel sales prices are as low as they are, but they’re still making money,” according to another source. “So at this point, it seems like there isn’t any great pressure to try to push the market down any further than it already is.”