The April US domestic scrap cycle is ending the week with subdued outcomes versus expectations. In the Ohio and Pennsylvania regions, a source informed SteelOrbis in mid-week of several large mills making offers for prime scrap grades such as busheling at plus $10/gt ($10/mt) while offers for shredded and P&S scrap were made at plus $15/gt ($15/mt), both compared to March settled prices. Though due to planned maintenance at mills through the month as well as expectations of “scrap backlog deliveries catching up,” some scrap sellers were warned of lower buying volumes compared to the volumes purchased in March. Other mills waited and made offers at prices up $5-10/gt ($5-10/mt) compared to their March purchase prices.
Today, sources inform SteelOrbis that shredded prices in the Northern Ohio and Pennsylvania regions settled on April 5 at $390-400/gt ($396-406/mt), busheling scrap settled at $395-410/gt ($401-417/mt), HMS I settled at $360-370/gt ($366-376/mt), and P&S settled at $375-385/gt ($381-391/mt), all delivered to customer. Predominantly, local shredded sales reportedly increased $5/gt ($5/mt) compared to March settled numbers while remote sales achieved $400/gt ($406/mt).
A scrap seller noted, “Prices on HMS I scrap yesterday still managed to claim plus $15/gt compared to March settled price, but they could be down $10/gt from yesterday’s numbers by the end of today April 6.”
A separate source noted, “The softness in East coast exports for April is causing uneasiness on the part of scrap dealers which have resulted in offerings at less money. Pricing is now unfortunately backing off some to March numbers.”