As the US domestic scrap market buy-cycle is about to begin, sources are consistently informing SteelOrbis of expectations of slightly lower prices on the East coast and mixed results inland, depending on scrap grades.
On the East coast, sources report that the “export effect” will dampen prices $10-15/mt across all grades including prime grades, such as busheling. For inland regions, sources in areas such as Ohio report that some mills were still seeking shredded, P&S, and HMS I scrap grades into the last half of January. Additionally, some transportation challenges may play a role in buoying prices. Therefore, inland sources report expectations of busheling scrap decreasing by $10/mt while the other scrap grades are likely to trade sideways.
The US economy is considered to be on strong footing and mill utilization rates are expected to continue hovering the 75 percent rate.