Last week, SteelOrbis reported that while market sources were somewhat mixed in terms of how much strength US scrap prices might have in October, what was agreed, is that there “is no downside.”
"There hasn't been a decrease in supply or an increase in demand. For now, the market seems to be in balance," a source said.
Finished steel prices are also trending strong. For example, US flat rolled steel prices have firmed notably since the last week of August. Lead times for HRC are still trending at 8-9 weeks, sources note, adding that CRC and HDG lead times "are at or above 10 weeks.”
Structural tubing prices have also risen in the past week, and market sources say they believe that tube mills “are likely to try for another price increase sooner than later.” As for long products, rebar, wire rod, merchant bar and beam prices have increased this month after mill-announced price increases.
Scrap market sources in the Ohio Valley and Pennsylvania also agree that sideways pricing, if not higher pricing, is likely to emerge in the October buy cycle. “The shredders have been raising their [peddler] prices significantly,” a source noted.
Another source agrees that October’s scrap prices are likely to hold stable, if not firm slightly, from September settled levels. “If I were to bet on the markets, I’d put my money on sideways to slightly up for October,” he said.
A final source also agreed, noting that today's snapshot of the market points to price stability.
“I think export is still good, and I don’t see the exporters dropping their [dock] prices, which will help keep things steady,” he said. “There could be some higher prices on select transactions, but for the most part, I expect the market will be sideways to strong sideways. It’s not all that exciting and I don’t think October’s prices are going to be anything to write home about."