In December, US domestic scrap settled sideways after two months of upward price movements. As December progressed, various US domestic scrap sellers reported to SteelOrbis the probability of sideways to slightly soft results for January. Estimates in mid-December were of a potential decrease in prices of $5-20/gt ($5-20/mt) depending on the grade.
On January 3, SteelOrbis reported slow trading in the market, which traditionally trades the first week of each month, and confirmed early shredded scrap transactions down $30/gt ($30/mt) in the Midwest regions and down $35/mt in Eastern Pennsylvania, which were more severely affected by the downward pressure from low export demand. A source added today that if East coast exporters unload more scrap inventories into Eastern Pennsylvania prices may deep further $5/mt.
In the Midwestern regions including Ohio and Pennsylvania, mills placed offers on cut grades such as shredded scrap down $30-35/gt ($30-36/mt) and slowly concluded deals this week. A Chicago scrap seller confirmed that he had not settled on prime scrap yet as of January 9, indicating some negotiations are still in play even though it is the second week of the month. Another source noted that prime grades traded down $25-30/gt ($25-30/mt) depending on region and the need by the customer but predominantly traded down $30/gt ($30/mt).
A source in the East coast noted that shredded scrap prices in the region dipped further than $30-35/gt ($30-36/mt), which was experienced in the rest of the country due to an exporter leading the way with “a panic on shredded” and lowering prices by about $40/gt ($41/mt) in the East Coast and by up to $45/gt ($46/mt) in deals slightly south from Maryland. A separate source added, “Yes, it was possible to get cheaper than the $30-35/gt ($30-36/mt) price decline compared to December if a mill is willing to wait for the scrap.”
*Top number denotes change from the bottom of the range and bottom number change from the top of the range in mt.
Ohio/Pennsylvania Delivered to customer |
January |
December |
Change* |
HMS I |
$315-320/mt $310-315/gt
|
$345-351/mt $340-345/gt |
-$30/mt -$31/mt |
Shredded |
$340-345/mt $335-340/gt |
$376/mt $370/gt |
-$36/mt -$31/mt |
Busheling |
$386-406/mt $380-400/gt |
$417-437/mt $410-430/gt |
-$31/mt -$31/mt |
P&S |
$335-340/mt $330-335/gt |
$371/mt $365/gt |
-$36/mt -$31/mt |
East coast Delivered to customer |
January |
December |
Change* |
HMS I |
$295/mt $290/gt
|
$320-325/mt $315-320/gt |
-$25/mt -$30/mt |
Shredded |
$315-325/mt $310-320/gt |
$361-366/mt $355-360/gt |
-$46/mt -$41/mt |
Busheling |
$351-356/mt $345-350/gt |
$381-386/mt $375-380/gt |
-$30/mt -$30/mt |
P&S |
$305/mt $300/gt |
$330-335/mt $325-340/gt |
-$25/mt -$30/mt |