In March, US domestic scrap prices rose anywhere from $15-$40/lt, depending on grade and region, but that sudden burst of strength is unlikely to continue into next month. In the Midwest in March, the scrap market was especially strong, with busheling prices jumping about $40/lt while shredded and HMS I scrap prices increased a robust $30-$35/lt, depending on the city. In the South, scrap prices rose by about $20-$30/lt, with the East Coast recording the most modest increases at $15-$20/lt as a significant slowdown in export activity impacted US domestic scrap prices. And while Turkey picked up scrap purchases from the US in the last week or so, sources tell SteelOrbis that Turkish mills are concerned about the rising strength in the US dollar and have purchased more scrap cargos out of Europe as a result. Further, on Friday, US HMS I/II prices delivered to the pier on the East Coast fell from $350/mt to $340/mt.
In the US domestic market, demand from mills is reasonably decent and there isn't a major surplus of scrap available. However, finished steel prices in the US have not improved much in the last couple weeks despite announced price increases on sheet and plate products (price increases for long steel products have had more success). Additionally, industry insiders said that one major scrap-buying mill purchased a substantial quantity of pig iron from Brazil recently, where prices are currently about $415/mt CFR NOLA. The overall scrap outlook for April appears to be sideways at best, with a possibly $10-$15/lt drop in prices. If mills attempt to pay sideways to slightly down prices, sources say scrap will be sold as usual, but if mills try to push prices down further, it could result in dealers holding back tons as some did during early February sales.
US domestic scrap prices in early March were as follows:
US domestic | Long Ton (lt) | Metric Ton (mt) | Change from prices in early February |
Midwest | |||
Busheling Scrap | $420-$425 | $413-$418 | up $40/lt |
Shredded Scrap | $410-$415 | $404-$409 | up $30-$35/lt |
HMS I | $370-$380 | $364-$374 | up $30-$35/lt |
US domestic | Long Ton (lt) | Metric Ton (mt) | Change from prices in early February |
East Coast | |||
Busheling Scrap | $400-$405 | $394-$399 | up $15-$20/lt |
Shredded Scrap | $395-$400 | $388-$393 | up $20/lt |
HMS I | $350-$355 | $344-$354 | up $15-$20/lt |