On February 13, SteelOrbis reported an upward expectation for US domestic scrap prices in March.
According to sources, March domestic scrap offers this week are up $20/gt ($20/mt) compared to February settled prices. The prices are reportedly supported by tight scrap supply, harsh winter conditions expected to continue through the month, higher feedstock prices, and a high utilization rate at most domestic steel mills.
A source noted, “Cold weather alerts continue this week, thereby limiting our flexibility to accept discounted scrap offers due to both feedstock and the potential effect on delivery logistics networks.”
A separate source added that even power considerations are relevant during lower than average winter conditions as they affect energy prices and power grid reliability. Additionally, export demand and global scrap pressures “are viewed as supporting domestic scrap prices.”