A mixed scrap pricing trend, depending on grade and region, is expected for September.
There has not been much scrap buying activity in the middle of August, as most transactions were already concluded earlier in the month. Domestic scrap demand is still there, however, and market sources expect domestic mills to have a reduced production schedule in September. On the other hand, the current scrap flow has slowed down a bit when compared to the strong flow in early summer that put pressure on shredded scrap.
Also taking into consideration a relatively stable price level on export scrap prices over the past month, most market insiders are speculating that domestic scrap prices will stay neutral in September while some market insiders see a mixed pricing trend depending on grade and region. And if domestic mills demonstrate high interest in scrap buying in the next few weeks, it could push prices slightly upward.
On the East Coast, it is expected that domestic busheling, shredded, and HMS I scrap prices will go sideways to up by as much as $10/lt ($9.84/mt) in September. However, in the Midwest, industry insiders are anticipating busheling scrap prices to go sideways to slightly down, shredded scrap prices to go sideways to up by as much as $10/lt ($9.84/mt), and HMS I prices to stay neutral. Market sources pointed out that if domestic scrap prices do increase in September, the price level will be the peak for the second half of 2011.
In the beginning of August, East Coast busheling scrap prices were in the level of $515 to $525/lt ($506.87 to $516.71/mt), shredded scrap prices were in the range of $450 to $460/lt ($442.89 to $452.74/mt), and HMS I prices were between $420 and $430/lt ($413.37 to $423.21/mt).
US Midwest busheling scrap prices were at $510 to $520/mt ($502 to $512/mt), shredded scrap prices at $440 to $450/mt ($433 to $443/mt) and HMS I prices at $415 to $425/mt ($408 to $418/mt).