In December US domestic scrap settled sideways, but with the bearish sentiment that began in mid-December, January scrap settled down sharply. Shredded scrap settled down $30-46/mt, HMS I decreased $25-31/mt, busheling scrap decreased $30-31/mt, and P&S scrap decreased $25-36/mt depending on the region.
Per a mid-month survey of sources in various parts of the country, SteelOrbis is informed that many industry players expect the US domestic scrap to settle sideways to down $5-10/gt ($5-10/mt) in February. A source stated, “Turkish mills have paid up for US scrap. I am just unsure they can maintain these buying prices with billets and rebars not reflecting the same increase.” A separate source added, “Domestically I continue seeing demand, but the export effect is leaving us with a surplus on the East coast. Therefore, I think flat at best but could go down $10/gt ($10/mt). A third source in Chicago noted, “Things feeling bearish for February scrap prices. We have a slight overhang in scrap inventories in the US. Winter weather storms may prop up the scrap market in February.”