US scrap market settles mostly sideways to slightly up, prices on East Coast settle higher

Domestic scrap prices in the South and Midwest have settled at largely sideways during this month’s buy cycle, although SteelOrbis sources on the East coast have said that scrap prices have settled higher than expected, due to renewed competition with exporters.

SteelOrbis sources have confirmed that export docks in New York and Philadelphia have raised their dock prices, from $195-$200/gt, to approximately $200-$225/gt, to ensure that cargo bookings to Turkey can be fulfilled.

Other than the unexpected but logical rise on the East coast, sources have noted that prices in Houston and Dallas have settled at sideways, whereas prices in South Carolina are “mostly sideways,” although prime grades have settled up by $10/gt ($10/mt).

Pricing in Chicago, however, has been a mixed bag. Although some sources are reporting prices are sideways to up $10/gt ($10/mt) on busheling, others have reported that shredded scrap has traded at sideways to down $10/gt ($10/mt).

As far as the trend for July, sentiment is entirely mixed, with some saying they believe the market could be poised to firm, whereas others feel that prices could tick downward.

“On one hand you have some positive signs. Earlier today, it was reported that the US unemployment rate from 14.7% to 13.3%. More businesses are starting to reopen their doors and COVID-19 restrictions are still winding down,” a source said. “On the other hand, the summer months tend to be a slower time for the industry as a whole. The only thing we can do at this point is keep an eye on the [captivity utilization] rates, because that’s going to be a key indicator as to where the [scrap] market is heading.”

This month’s settled scrap prices are listed in the charts below.