Earlier this month, SteelOrbis reported expectations of a strong sideways trend for US domestic scrap prices in the Central Midwest region, and a soft sideways trend in the Midwest, Pennsylvania regions, and East coast regions.
As the November buy-cycle approaches, sources inform SteelOrbis that sideways price expectations continue to be steadfast for the obsolete scrap grades such as HMS I, shredded and P&S. However, prime grades, such as busheling and bundles, may face some downward pressure in the Detroit and Chicago regions because of a surge in Canadian scrap imports. A source noted that Canadian scrap is plentiful at the moment, though a separate source was unsure of the magnitude outside the Great Lakes region since his customers inland “could not get enough prime in and freight rates are increasing for delivery.”
A separate source stated, “Mills seem to be consolidating outages in the fourth quarter for maintenance and finished steel supply management, which may influence prime down $10-20/gt ($10-20/mt).”
On the East coast, scrap yards welcomed the announcement of the latest Turkish scrap deal at $309/mt CFR on HMS I/II 80:20. That deal, along with strength in scrap exports to emerging markets, is keeping export demand a strong competitor to domestic mills in the upcoming November buy-cycle.