After a mostly sideways to slight positive move in the November scrap buy-cycle, with only busheling scrap encountering some downward pressure in some regions due to competition from Canadian scrap imports, sources inform SteelOrbis that US domestic scrap is expected to trend up across all grades in the December buy-cycle. A source noted, “I am noticing a strong positive sentiment for both the US export and domestic scrap markets into December.”
A separate East coast source stated, “Some tight scrap collection in the region and East coast export cargo demand will give us some positive momentum in December negotiations.” When asked about the remote possibility of a downtrend surprise, an Ohio source stated, “I just do not see it. Dealers are just not in a hurry to sell off what would be expensive material on discount and stockpiling into January is certainly an option. One month's operating costs are covered relatively easily, and with some slides in finished steel and efforts at price increases, it is best for mills to support scrap. Finally, the economy is looking robust with positive expectations for first quarter 2018, especially, if tax benefits become real.”