The price of April US ferrous scrap is heard sideways to down next month as a result of increased supply tied to better weather-related scrap inflows into local collection yards, market insiders told SteelOrbis. Insiders added that sharp increases in freight rates on export vessels headed to overseas scrap markets could lead to increased US supply as export scrap backs up at US ports.
“We’re hearing that April scrap is very much flat to down” said one US Midwest mill-based scrap buyer.
“Domestically, April pricing is looking sideways,” said another Midwest scrap insider. “On the export side though, scrap destined for Asian markets is up about $30/gt because of increased shipping rates.”
“We expect a bit lesser price of down $10-20/gt for obsolete grades [HMS, P&S],” noted still another Midwest scrap insider. “I would not be surprised to see primes settle sideways for April.”
Based on a sideways to lower expectation for April scrap, US Midwest local busheling and shredded scrap grades could settle on a delivered to mill basis at or below $445-455/gt ($452-462/mt), and $445-450/gt ($452-457/mt), respectively. P&S and HMS scrap might settle on a delivered to mill basis $10-20/gt less at $406-416/gt ($412-423/mt) and $370-390/gt ($376-396/mt), respectively.
