US domestic scrap prices finished settling for October earlier this week, and sources say the forecast for November is mixed due to the range of factors that could potentially impact the trend.
Many in the market are expecting a sideways trend next month after prices dropped this month, but some say that if export offer prices don’t firm up, it might be an indication that domestic prices have not yet hit bottom.
On the other hand, some sources think US scrap prices could rise next month. Collection is relatively slow due to pricing at the moment, but seasonal slowdowns in collection are expected in November and December, which could lead to an uptick in scrap prices. Additionally, fuel costs are still historically high, adding pressure to raise prices. Even so, a potential scrap price increase is expected to be modest, in the $10-$20/mt range.