On March 20, SteelOrbis reported a sideways to soft-sideways expectation for the early April US domestic scrap trading week in the Midwest.
Sources are now reporting to SteelOrbis that mills are placing downward pressure on the US domestic scrap market with initial offers of up to $20/gt ($20/mt) lower than settled scrap prices in March. A source in Ohio stated that the decline of $20/gt ($20/mt) is deeper than his initial expectations of down $10/gt ($10/mt) on cut scrap grades such as shredded scrap, P&S, and HMS I. A separate source added that while the seasonal effect with improved weather conditions does improve feedstock supply, he expressed the hope that the final settled prices may not be as low due to continued strong mill production schedules. A third source commented that given the increased feedstock on improved weather conditions, mill maintenance schedules, and the price tension on finished steel goods in the US market, the decline in cut grades of $15-20/gt ($15-20/mt) is likely to remain the reality for April.