For September, the expectations were prime scrap down $10-20/mt, sideways pricing for HMS I and P&S scrap grades in the Central regions but slightly down in the East Coast, and shredded scrap sideways to down $5-10/mt.
As the market settled on the East Coast today, prime scrap prices went down $25-30/mt while cuts and shredded scrap went down approximately $15/mt. HMS I/II 80:20 for export declined $20-25/mt.
A scrap trader close to SteelOrbis stated, “The downward spiral that has been experienced in the scrap market recently not only factors in the weak export market but also the weak demand experienced from the domestic mills.” SteelOrbis was informed by several sources that mills continue with an active inventory control strategy, and during negotiations this week, they immediately thwarted efforts at maintaining sideways to down $5/mt pricing with direct down $15/mt counter offers to meet lower buying volumes.
A separate scrap trader that spoke with SteelOrbis commented that while prime scrap experienced a $25-$30/mt decline in price, its index pricing allows for some built in margin. On the other hand, shredded and cuts are dependent and affected by open market pricing to collectors, hence, the approximate $15/mt decline was more than the slight decline expected in this week’s buys and negatively affected margins. Additionally, as the decline in prices will invariably trickle down to a downward adjustment in prices to collectors, the scrap inflow is expected to remain tight in the next several months.
Other regions continue trading and are expected to settle early next week.
| September 9, 2016 | East Coast |
| HMS 80:20 | $152-163/mt ($150-160/gt) |
| HMS I | $178-183/mt ($175-180/gt) |
| Shredded | $208-213/mt ($205-210/gt |
| Busheling | $208-218/mt ($205-215/gt) |
| P&S | $188-193/mt ($185-190/gt) |