While the US domestic scrap market has been quiet throughout most of October, many are optimistic that November will bring higher prices. After prices took a dive at the beginning of October, a number of scrap dealers began snapping up tons at the new lower prices. The lower prices, followed by increased stocking activity, compromised scrap flows, according to SteelOrbis sources, and some scrap suppliers began holding on to more scrap tonnage in anticipation of traditionally higher winter prices. Additionally, export scrap prices are beginning to trend higher as well. While activity has been minimal in Turkey this past week on account of a weeklong holiday that continues through October 30, Turkish mills are expected to come back later in the week hungry for scrap and ready to stock up before winter.
Already, US exporters have raised offers to Turkey, and Chinese mills have also recently come back to the US market in search for scrap, after months of relying on domestically-produced and Japanese scrap supplies. Additionally, a number of US mills have depleted inventories after not buying much scrap this month. But while all of these signs point to a price increase of as much as $20-$30/lt, according to some more optimistic predictions, many are still weary of speculating too early on prices given so much price volatility the last couple months. For the time being, most at least agree that prices likely bottomed for the year in October.