It’s been less than a week since November US scrap prices have settled, but sources close to SteelOrbis say they don’t see any downside for December.
“There are a few things that are playing into that,” a source said. “Shortened collection periods due to the holiday season need to be considered, not to mention the fact that [scrap inflows] are slowing due to seasonal factors.”
Others continue to point out that the smaller, independent scrap yards “have already made a ton of money this year, and any additional cash they make is probably going to be taxed heavily come tax-filing time. If the price isn’t right, I just don’t see that a lot of them are going to be motivated to sell next month,” the source added. “Some may just decide to sit December out and not jump back in until January.”
As far as where December scrap prices could settle, that’s “the big unknown.”
“I think it all depends on where you sold this month,” a final source added. “In some parts of the country, scrap was up by $70/gt. I think the guys who sold at the top of the market will be sideways, whereas the guys who sold at up $40-$50/gt might get a bump next month.”
December’s scrap trade, many pointed out, is still “at least three weeks out,” stating that a lot can change between now and the start of next month.