In the early April trading week, US domestic scrap trended down further than initially expected. April expectations ranged from an increase of up to $10/gt ($10/mt) on shredded crap in the Texas region to sideways or soft-sideways in the Midwest and East Coast. Settled prices decreased by $20-25/gt ($20-25/mt) throughout all regions including Texas.
Per a mid-month survey, sources inform SteelOrbis that US domestic scrap mart is most likely to trend downward $10-15/gt ($10-15/mt) in May due to an overhang of scrap inventory as the mild spring weather surfaces. Additionally, given the low volume buys by some mills and lower scrap prices in April, some scrap buyers report choosing to keep inventory out of April negotiations.
A few optimistic scrap sellers have informed SteelOrbis of sideways expectations as a result of the continued strong steel production utilization rates and general supply and demand balance since lower buying prices will also delay the spring feedstock into yards. The opinion, though, is in the minority. Mills are expected to exert additional downward pressure on seasonal effect and downward pressure on finished steel good prices. Finally, the concern over lower import scrap prices by Turkish mills in the next few weeks is also dampening expectations for May.