After two consecutive upward settlements in the December and January US domestic scrap buy-cycles, the market trended sideways inland and slightly down on the East coast on slightly soft export prices in February.
In early February, sources were verbalizing the possibility of the March cycle trending down $5-15/gt ($5-15/mt) depending on region due to softer export market deal prices and more than adequate supplies. As global scrap prices have firmed up, sources now report to SteelOrbis that the market is likely to move strong sideways.
A separate source noted, “Mill demand is expected to remain strong along with industrial scrap output. I am not aware of dealers holding on to scrap in February, though, some accumulation of prime scrap was apparent in some regions as some large mills turned down offers on prime at January levels in February. I think strong sideways.”
Upon inquiry of an upward possibility, one source stated, “I just do not see the upside potentially allowed by the mills despite upward pricing on finished steel goods as scrap flow into yards may increase in March due to better weather.”
In regards the export effect, an East coast scrap seller said, “The market is still digesting the 232 information and threats of retaliation on decreased scrap buys from Turkey, for example, but it is not a real factor yet and not for March.”