US scrap market holds steady in September

Overall US domestic scrap prices stayed neutral in most regions, while some areas registered a slight increase on shredded scrap prices in early September.

In September, East Coast busheling scrap prices remain in the level of $515 to $525/lt ($506.87 to $516.71/mt), shredded scrap prices are still in the range of $450 to $460/lt ($442.89 to $452.74/mt), and HMS I prices continue to range between $420 and $430/lt ($413.37 to $423.21/mt).

US Midwest busheling scrap prices are at $510 to $520/lt ($502 to $512/mt), most shredded  scrap prices are at $440 to $450/lt ($433 to $443/mt) while some areas in Ohio registered an slight increase of $5/lt ($4.92/mt), and HMS I prices range from $415 to $425/lt ($408 to $418/mt)

As domestic mills already concluded most of the scrap tonnages they need earlier this month, the market is slow for the time being. Scrap demand from domestic mills is decent, however, scrap flow is decreasing. The tight scrap supply, particularly shredded scrap, and the needs to secure scrap tonnages for the difficult scrap collection winter months, places pressure on the domestic scrap prices.

On the other hand, the scrap export market remains steady; prices have remained unchanged the last couple of weeks. Although market sources anticipate Turkey will increase the scrap purchasing activities soon, it may not be enough to support an upward trend on the domestic scrap prices in October, unless there is improvement on the export scrap prices registered in these two weeks.

Therefore, market sources do not see a downward pricing trend on US domestic scrap prices and expect prices will go sideways again in October and may see an increase towards the year end due to supply pressure.