US domestic scrap prices went sideways to down in March, depending on grade and region, from pressures that may spill into April. Busheling prices registered the most dramatic drop in March, falling as much as $10/lt in some Midwest regions. An oversupply of scrap was the main culprit for the decrease (despite growing steel production rates) in addition to falling flat rolled steel prices; sources tell SteelOrbis that mills pressured scrap prices lower this month on account of tightening margins on finished steel prices. For the time being, the oversupply situation that has dampened scrap prices over the last couple months still persists and there have been no weather-related interruptions in scrap collection either. As a result, one East Coast dealer commented that getting an increase in April could be a challenge.
As for shredded and HMS I scrap, prices in March reflected a strong sideways trend, with $5/lt decreases reported in some East Coast cities; and at least one mill paid slightly higher prices in March. While much less of an issue compared to prime scrap grades, there is still some overhang of shredded scrap in the market, due to favorable weather and less export activity over the past few weeks. China has made very few scrap purchases from the US while the most recent scrap cargoes sold to Taiwan and Turkey over have been at lower prices than just a couple weeks ago. If the export scrap market doesn't firm soon, US shredded and HMS prices may have little chance of increasing as well.
US domestic | Long Ton (lt) | Metric Ton (mt) | Change from early February prices |
East Coast | |||
Busheling Scrap | $470-$480 | $463-$473 | Sideways to ↓ $5-$10/long ton |
Shredded Scrap | $430-$440 | $423-$433 | Sideways to ↓ $5/long ton |
HMS I | $390-$395 | $389-$394 | Sideways |
US domestic | Long Ton (lt) | Metric Ton (mt) | Change from early February prices |
Midwest | |||
Busheling Scrap | $465-$470 | $458-$463 | ↓ $10/long ton |
Shredded Scrap | $440-$445 | $433-$438 | Sideways |
HMS I | $390-$395 | $384-$389 | Sideways |