January domestic US scrap is now discussed sideways to strong sideways, versus a more mixed call offered seven days earlier, amid expectations for better demand from mills for the new month, scrap insiders told SteelOrbis this holiday week.
“Shipments are strong, and we’re getting everything that we have booked thus far,” said one US domestic mill scrap market insider, commenting on recent scrap shipments. “I’d say the call right now for Midwest busheling, shredded and (P&S), is 70 percent sideways and 30 percent higher for January.”
No updated call for the US Northeast January scrap was available, therefore, it will be maintained at sideways to December as was reported a week earlier.
Recently, January scrap calls expecting higher values versus December have been based on expectations that there are a larger number of finished steel production days (melt days) in January versus the prior month, as well as the likelihood that a larger number of electric arc furnaces will be online during the month of January versus December. Conversely, sideways to lower January scrap predictions were based on an outlook that had finished steel demand flat until later in the first quarter 2025.
During the December buy cycle, Ohio Valley scrap settled sideways to $10/gt ($10/mt) less, SteelOrbis data shows, with HMS 1 down $10/gt at $320-340/gt ($325-345/mt) delivered to customer, shredded scrap off $10/gt to $375-380/gt ($381-386/mt) on a delivered basis, while P&S settled $10/gt lower at $366-$376/gt ($372-382/mt) delivered to customer. Busheling settled sideways to November at $390-415/gt ($396-422/mt) on a delivered to customer basis.
In the US Northeast, pricing was off across the board for December, though declines were less severe owing to scrap export opportunity, insiders said. HMS settled down just $2/gt from November settles at $335-350/gt ($340-356/mt) delivered to customer, while shredded saw pricing down $5/gt to $365-375/gt ($371-381/mt) delivered. P&S action was settled $5/gt less at $335-345/gt ($340-351/mt) on a delivered basis, while busheling scrap was also off $5/gt to $390-410/gt ($396-417/mt) delivered to customer, market insiders told SteelOrbis.