US domestic scrap trades slightly soft in July

As June ended, several dealers expressed concern to SteelOrbis for the early July scrap trading week. Some feared the possibility of a downward trend of $20/gt ($20/mt) compared to June settled prices driven largely by the drop in finished steel prices on both domestic longs and flats. A few scrap dealers were hoping that the lower prices at the scale would balance supply and support prices but were well aware of the lower potential volume buys from mills on scaled back production schedules.

Sources inform SteelOrbis that prices in the Midwest declined approximately $8-10/mt on HMS I, shredded and P&S grades while busheling and other prime grade bundles decreased $5-6/mt. A source noted today that energy mills are running at 50 percent and flat-rolled spot sellers at 60 percent within his Northern Ohio and Pennsylvania region. He said, “The bottom line is that the steel business needs to improve if scrap prices are to rise and stay there.”

Sources report slightly more sideways trading in the East coast compared to June settled prices.

*Sideways trading, public trades mostly the same as settled prices in June