Scrap prices in the US may once again be little changed in February after a mostly sideways trend during early January buys. At the end of December and the first couple weeks of January, export scrap activity off the US East Coast was robust with numerous cargos sold to Turkey; but in the last week, Turkey has turned primarily to Europe to secure its scrap needs. Export scrap activity off the US West Coast also improved early in the month but the momentum has stalled for the time being. US domestic scrap dealers were hopeful that the sideways January move and improved export activity would be enough to boost scrap prices in early February, but that confidence has also since dimmed.
US domestic mills are not building inventory, and are choosing to buy only the scrap necessary for short term production, especially as steel prices for many finished products remain fragile, and have even softened in the flat rolled market. While there isn't any substantial scrap overhang in the market either, sources say there is a decent amount of busheling scrap available. In the Midwest, one scrap dealer noted that the lower water levels on the Mississippi River have prevented some scrap from moving down into the South, resulting in more available in the Chicago and Indiana regions. While it is too early to predict exactly where the market will settle next months, mills may attempt to push down scrap prices in February or enter the market looking for sideways pricing-either way, no major change is anticipated.