SteelOrbis sources have confirmed that while scrap prices are unlikely to settle until tomorrow or Wednesday, that upward pricing is likely in regions throughout the U.S.
“The market looks like it’s going to be up $20-$30/gt,” a source said. “Although I don’t think a lot of tons will be traded, it appears that we have some very nervous mills trying to get in ahead of the new year because they have concerns about potential railroad disruptions and lower scrap inventories.”
Sources in the Northeast believe that scrap prices in that region could be up sharply “after the dust settles.” One source estimates that HMS prices in that region could reach $320-$330/gt, against an average of $295/gt in November, “which is largely tied to what we’re seeing going on in the export markets.”
Also, of note is that Delta Steel entered the market today at up $30/gt for busheling, up $20/gt on frag, and up $20/gt on plate and structural.
Final settled prices are expected to emerge by tomorrow or Thursday.