In early April, SteelOrbis reported that US domestic scrap prices traded down across all grades. The downward trend was attributed to higher expected feedstock into scrap yards on improved weather, maintenance schedules at mills and some weakening in book orders at some mills that injected caution.
Since the closing of the early April trading week, sources informed SteelOrbis of expectations of a downward trend in May. Initially, the expectations for May were a decline of $10-15/gt ($10-15/mt), but the potential decline deepened as the month progressed due to softer Turkish scrap import prices and the potential of limited demand by mills. As negotiations began early in May, sources informed SteelOrbis of downward expectations ranging from $25-40/gt ($$30-40/mt) depending on grade and region. A source stated that May is "riddled with planned and unplanned maintenance schedules" that are limiting demand and placing downward pressure on scrap prices. A separate source added that softer sales of finished goods at mills seemed to have also contributed to the limited volume purchases. Seasonal factors such as an increase in the feedstock to scrapyards in better weather conditions also placed supply side pressure.
Ohio/Pennsylvania Delivered to customer |
May |
April |
Change* |
HMS I |
$279-284/mt $275-280/gt |
$310-315/mt $305-310/gt |
-$31/mt -$31/mt |
Shredded |
$305-307/mt $300-302/gt |
$335-337/mt $330-332/gt |
-$30/mt -$30/mt |
Busheling |
$330-351/mt $325-345/gt |
$366-386/mt $360-380/gt |
-$35/mt -$35/mt |
P&S |
$300-305/mt $295-300/gt |
$330-335/mt $325-330/gt |
-$30/mt -$30/mt |
*Top number denotes change from the bottom of the range and bottom number change from the top of the range in mt.