As the May domestic buy-cycle was evaluated early in April, many were forecasting a sideways to soft-sideways movement. As April progressed, SteelOrbis was informed of an expectation of a price erosion month-to-month of $10-20/gt ($10-20/mt), though in some outlets the possibility of $30-40/gt ($30-41/mt) was entertained due to increases of scrap flows with the spring weather in conjunction with the softness in the global scrap market. While higher price drops were expected for cut grades (shredded and P&S), some feared that busheling might also see the lower end of the price erosion.
As the May buy-cycle begins, sources inform SteelOrbis that prices are trending sideways for prime grades such as busheling, and down $10/gt ($10/mt) on shredded and P&S in the Midwest. In the East coast, sources report that scrap prices on shredded and P&S now are trending down $10-20/gt ($10-20/mt) and sideways on busheling.
A source noted, “It is good to see a sideways on busheling. I will attribute the slight dip on cut grades to the seasonal effect, therefore, meaning that demand is quite robust. While these prices are not settled prices for the month, we still have the week, as the remaining major mills come in to the fray, we expect them to follow suit.”
SteelOrbis reported April settled prices for the Ohio region and the East coast.