US domestic scrap prices increased by a wide range of $30-$61/mt ($30-$60/gt) this month, depending on product and region, although sources are not convinced another strong uptrend is on the horizon for October. Most sources agree it’s “anyone’s guess” what will happen to US scrap prices next month, other than “they should go up.”
One source noted that several mills are scheduled for maintenance outages while demand is projected remain steady, adding that “the only thing that can keep us sideways or up is if the fervor to buy feedstock.”
Another source noted the boost in finished steel orders after recent mill price increase announcements “shook buyers of the sidelines,” and said that once those orders arrive, demand may decline. However, the source said, “the good news is by the time that happens, we should be entering the winter months” and scrap flow will decrease.
One source is predicting another ample scrap price increase for some regions in October, based on a short-term mill strategy of boosting sales prices and blaming scrap, while another source said he just hopes there isn’t a “vicious up and down market as we approach the November elections.”