US domestic scrap prices during the current month’s buy cycle are “pleasantly surprising,” sources note, adding that “the market seems to have more strength than we thought.”
For example, prices in the Northeast are trending up by $25/gt ($25/mt) across the board compared to July settled prices. “The mills don’t have a lot of inventory and some of them have come out at $230-$235/gt ($234-$239/mt) for HMS, $240-$245/gt ($244-$249/mt) for P&S and $250-$255/gt ($254-$259/mt) for shredded,” a source said.
This trend, he noted, “is largely reactive to what’s been happening with export.”
On July 31, SteelOrbis reported that an Iskenderun-based producer had concluded a deal from Denmark for HMS I/II 80:20 scrap at $279/mt. It was also reported that a Zonguldak-based steelmaker bought another Baltic origin cargo from Finland, at an estimated HMS I/II 80:20 benchmark price of $276/mt CFR. Today, another deep sea scrap sale was concluded with a supplier in Finland, at $283/mt CFR for HMS I/II 80:20.
“The [East coast] exporters have raised their [HMS] dock prices to $210/gt and we think that $220/gt will probably happen sooner than later,” the source added.
Another source confirmed that the Detroit market is “sideways on cut [grades] and shredded, and down $20/gt ($20/mt) on prime.” In Chicago, “cuts and shred are sideways to slightly up, and busheling is down $10-$20/gt ($10-$20/mt).
As far as prices in the Southeast, sources note that this month’s scrap trade “got off to a slow start because of [Tropical Storm Isaias]. Other sources say they believe that using the storm as an excuse “is more about posturing to try to get better pricing. We only had to close our yards for half a day [because of the storm].”
Another source said he’s not surprised that in some cases, prices for cut grades are sideways to up. “This is all being fueled by the export market and improved demand that the mills have yet to acknowledge.”
August settled prices are expected to emerge by end of business (EOB) on August 6.