US domestic scrap prices trading downward, expected to settle early next week

Although US domestic scrap prices are not expected to settle until early next week, early trading numbers show that grades in the East coast and Ohio Valley are trading downward at $30-$40/gt ($30-$41/mt).

In the upper Midwest, sources note, prices for shredded and P&S scrap are trading down at $30-$35/gt ($30-$36/mt), while busheling is trading downward “by as much as $50/gt ($51/mt.)”  Current upper Midwest numbers are consistent with SteelOrbis’ prediction from earlier this week.

“We think the market is scraping the bottom at this point,” a source said. “Export has picked up slightly, but no one would describe it as being great. That, and finished steel demand in the US is terrible. All in all, there’s nothing that we see that would indicate a Q4 rebound [for the domestic scrap market].”

Another source agreed. “I agree that for the rest of 2019, it is unlikely to see any memorable change. But with potential trade talks between the US and Turkey being positive on trade tariffs, there could be a change in the current Section 232,” a source said. “Should that happen, export [scrap] business could pick up.”

Market players throughout the US say they’re hopeful that East coast exports to Turkey will pick up, as that would help domestic scrap prices. However, as of today, finished steel pricing and demand in Turkey is limited. Unless that changes, some say, hopes that export sales will increase markedly “may be nothing more than wishful thinking.”

Current East coast / Ohio Valley scrap prices are listed below. Final prices are expected to come early next week.