While US domestic scrap prices have not yet settled for March, early transactions are showing little change from February prices. Only a few mills made their March purchases as of Friday, and while one mill bought scrap at prices sideways to slightly down from last month, another was forced to pay prices that reflected a sideways to slightly up trend from February. The market is still "confused" according to East Coast scrap dealer sources. Prices will likely settle over the next few days, but early indications are pointing to some downward pressure on busheling prices, while shredded and HMS I scrap prices could settle moderately higher compared to February. Scrap flowed better than usual over the past month and flat rolled mills are apprehensive to pay higher prices for busheling in March due to weakened order books, as well as a slight oversupply of scrap because of an overhang of pig iron over the past couple months.
Meanwhile, the US scrap export market has improved over the past few weeks. Sources tell SteelOrbis that some domestic dealers of shredded and HMS scrap are waiting to see if the export scrap market firms further before selling off current inventories, although export prices have been little changed in the last week. So while the approximately $15/mt increase in export scrap prices in mid- to late-February could push domestic prices up, domestic long steel demand--and consequently domestic scrap demand--is far from robust, and may result in a strong sideways to slightly up (in some regions) move this month.