During the March buy-cycle, US domestic scrap settled prices increased for shredded scrap $20-35/gt ($20-36/mt) compared to February scrap settled prices, depending on region. Prime grades such as busheling traded up $10-15/gt ($10-15/mt) inland and sideways on the East coast.
Sources inform SteelOrbis that tight scrap inventories, especially for obsolete grades such as shredded scrap along with rail car delivery delays, has some scrap dealers slightly delayed on shipments to mills. Mills sought assurances of March delivery in some mid-month negotiations which resulted in “some creeping up of prices in mid-month which will place April negotiations on a firm positive footing.” Mills are reportedly receiving additional orders due to both Section 232 tariffs limiting imports from most countries as well as the seasonal effect on the improved pace of construction outlook as spring begins.
As SteelOrbis sought to establish an early pulse of the market today, sources reported strong positive expectations for the April buy-cycle that may result in shredded, P&S, and HMS I grades moving up $20/gt ($20/mt) again in comparison to the previous month’s settled levels. An East coast source speculated that some obsolete scrap deals may even be able to achieve an increase of $30/gt ($30/mt) compared to the previous month.
Additionally, sources inform SteelOrbis that prime grades such as busheling may be sought after by blast furnace mills to improve steelmaking yields, thereby placing higher demand on prime scrap inventories. Depending on region and level of optimism, sources inform SteelOrbis that the increased competition for prime grades such as busheling could increase prices $10/gt ($10/mt) to up to $30/gt ($30/mt) compared to March settled prices.