After a three-month period of downward price movements in the US domestic scrap market, the October buy-cycle has started trading with a confirmed positive momentum.
On September 21, SteelOrbis reported expectations for the October period as “stable to positive” with one Ohio Valley dealer commenting that October could recover “half to all the September decline.” In the Ohio and Pennsylvania regions, September settled scrap shredded scrap prices decreased by $20/gt ($20/mt) while prices decreased $20-25/gt ($20-25/mt) in both Indiana and the East coast, and up to $25-30/gt in Chicago, all compared to August settled prices. While East coast busheling prices increased $10/gt ($10/mt) on limited volumes, busheling decreased by $10/gt ($10/mt) in most other regions.
Sources inform SteelOrbis that leading mills in Detroit and Ohio have agreed to increase shredded scrap prices by $10/gt ($10/mt) and busheling prices by $20/gt ($20/mt) in early October deals. P&S and HMS I grades are also reportedly up by $10/gt ($10/mt) in early trading.
The sources attribute the upswing to a tight global scrap market that resulted in a recent ex-US scrap deal with Turkey for $327/mt CFR on HMS I/II 80:20. Sources also note the recent deals of US East coast scrap to Asia. A source stated that a recent ex-US East coast bulk deal was booked in South Korea for 45,000 mt of HMS I/II 80:20 at $352-355/mt CFR. The strong export prices on both coasts along with strong demand are supporting October scrap prices.