US scrap pricing for August delivery settled sideways today for a third straight month following a July 31 decision by US President Trump to reverse a decision to implement 50 percent tariffs on Brazilian pig iron used in US steel production effective August 1.
Prior to Trump’s reversal on pig iron tariffs, market insiders said August scrap prices could potentially settle strong sideways to higher as more US steel producers would need to buy more August scrap as a replacement.
“DJJ [Nucor’s raw material supplier David J. Joseph Co.] did bid up the market on HMS on the river, but it’s posting sideways,” commented one steel scrap insider to SteelOrbis at August settlement. “They’re playing their usual games, and they were also short on their cuts buy this month.”
SteelOrbis scrap data shows US scrap prices have remained unchanged since the June buy cycle, following a $30-40/gt ($30-41/mt) decline in May scrap prices.
“We heard sideways on everything with the exception of turnings, which were up $20/ton,” said another US mill scrap buyer. “Everything seems to have come up sideways for the most part,” said a third SteelOrbis scrap insider.
Turnings are a grade of scrap generated during the machining process involving drilling, milling and turning steel to achieve a desired shape or dimension. Turnings are important in steel production because the small uniform size of steel turnings facilitates a quick and efficient charging and melting in furnaces, further contributing to cost savings and increased production efficiency.
Based on a sideways August settle, US Midwest prime busheling scrap in the Ohio Valley settled at $435-460/gt ($443-468/mt), while shredded scrap settled at $375-380/gt ($381-387/mt). Ohio Valley P&S and HMS grades settled sideways to July values at $361-371/gt ($367-377/mt) and $325-345/gt ($330-387/mt), respectively, scrap insiders told SteelOrbis.
In the US Northeast, a sideways August scrap settle would put prime busheling grade material at $380-400/gt ($387-407/mt), while shredded grades will settle at $325-335/gt ($330-342/mt). P&S and HMS grades will finish at $295-305/gt ($300-310/mt) and 305-320/gt ($310-325/mt), respectively, scrap insiders told SteelOrbis this week.
SteelOrbis historical scrap data shows since monthly domestic scrap prices peaked in March ahead of much anticipated tariff announcements from the Trump administration, the average price of Midwest Ohio Valley shredded scrap has slumped more than 24 percent from on average $506/gt ($514/mt) to $384/gt ($390/mt). HMS pricing in the US Northeast dropped a more conservative 22.8 percent during the equivalent period to on average $313/gt ($318/mt).
