Following this week’s $30-40/gt ($30-41/mt) declines for May scrap settled prices, the expectation for June scrap is now seen steady to potentially lower as reported inbound flows into scrap yards remain high, while mill demand is expected to remain flat next month, market insiders told SteelOrbis this week.
“I think sideways is where we are at today,” said one Midwest-based mill scrap buyer. “Material flows will still be healthy at these price levels, and demand should stay steady.”
On Tuesday, May 13, the completion of monthly buy-cycle negotiations yielded a US Midwest prime busheling scrap settle in the Ohio Valley $30/gt less than its April counterpart at $435-460/gt ($442-467/mt), while shredded scrap fell $40/gt (41/mt) to $375-380/gt ($381-386/mt). Ohio Valley P&S and HMS grades saw $40/gt price drops to $361-371/gt ($367-377/mt), and $325-345/gt ($330-351/mt), respectively. US Northeast busheling settled $30 less at $380-400/gt ($386-406/mt), while May shredded scrap lost $40/gt to $325-335/gt ($330-340/mt). P&S and HMS grades declined on average $40/gt to $295-305/gt ($300-310/mt) and 305-320/gt ($310-325/mt), respectively, scrap insiders said.
“Right now, we’re seeing too much flow continuing to come into yards,” commented another Midwest scrap trader. “We’re expecting sideways at best for the June scrap market.”
“June price expectations have jumped back up a bit,” said yet another East Coast scrap insider, commenting on reports of expectations for sideways June trade, following two consecutive months of steady scrap price declines.
SteelOrbis scrap data shows since monthly domestic scrap prices peaked in March ahead of much anticipated tariff announcements from the Trump administration, the average price of Midwest Ohio Valley shredded scrap has slumped more than 24 percent from on average $506/gt ($514/mt) to $384/gt ($390/mt). HMS pricing in the US Northeast dropped a more conservative 22.8 percent during the equivalent period to on average $313/gt ($318/mt).