March US scrap pricing was expected to settle sideways to recent higher February scrap pricing levels this week as a result of improved scrap inflows into local collection yards, market insiders told SteelOrbis.
During February trade, scrap insiders said record cold weather and snowfall across much of the US reduced the amount of scrap able to be aggregated from sub-collectors, depleting inventories and causing monthly scrap prices to rise about $20-30/gt across all grades.
“Scrap inflows remain still somewhat constrained in the US Northeast, though they are much improved elsewhere,” remarked one US Midwest scrap insider. “I think pricing will settle for March sideways, especially for Midwest shredded.”
“It sounds like March scrap is sideways,” reported one US Midwest scrap dealer. “It doesn’t seem like much trading has been done though.”
“Right now, all indications are for a sideways scrap market for March,” said another US Midwest scrap insider. “Hopefully, we will see [some mills] come into the market [March 4].”
Based on a sideways expectation for March, US Midwest busheling and shredded scrap grades could settle on a delivered to mill basis at $445-455/gt ($452-462/mt), and $445-450/gt ($452-457/mt), respectively. P&S and HMS scrap might settle on a delivered to mill basis $421-431/gt ($427-437/mt) and $385-405/gt ($390-410/mt), respectively.
On the US East Coast, following $30/gt higher February settlements, busheling and shredded scrap prices might settle sideways on a delivered to mill basis at $400-420/gt ($406-427/mt) and $395-405/gt ($401-411/mt), respectively. In P&S and HMS grades, following February’s $20/gt higher finish, P&S scrap could settle on a delivered to mill basis sideways near $350-360/gt ($355-365/mt), while HMS 80:20 scrap could finish steady at $365-380/gt ($370-385/mt), on a delivered to export yard basis, market insiders said.
