Early predictions for the US scrap market are pointing to another possible sideways trend in May, as overall scrap demand and supply remain mostly balanced.
Last week, some sources speculated that mills might try to take scrap prices down slightly, but so far, sellers have not shown much willingness to sell lower, especially considering HRC prices have seemed to stabilize and other finished steel products are trending steady as well.
Sources tell SteelOrbis that prime grades could still rise slightly in May despite sideways pricing for other grades, as some sellers reportedly held back primes a bit this month in order to sell higher when the market rises. However, any uptick in prime scrap prices would be modest, sources say, no higher than $10/gt for the month.
Another source agreed that prime grade prices are poised to rise, but not by more than about $30/gt over the course of the next 3-4 months.