US scrap prices could move sideways again in April

After US domestic scrap prices went sideways to slightly down in March, early speculation is indicating that there may not be enough pull up or down for any major price change in April. Sources tell SteelOrbis that while some dealers are announcing to their customers that scrap availability is tight, many dealers are holding high inventories. Additionally, after an unseasonably warm winter, weather across the country is mostly mild, making scrap collection easier. Further, scrap demand is steady, in line with a rising US mill production rate, and there isn't a big overhang in availability, either, as was the case in the previous two months.

With US long steel demand only decent, scrap dealer sources tell SteelOrbis that export scrap prices from both the US East Coast and West Coast would need to strengthen for dealers to be able to increase US domestic shredded and HMS I scrap prices in April. Although Turkey's appetite for US scrap has been strong over the past couple weeks, and many cargos have been sold, prices are only moving incrementally higher. As for busheling, after declining in many regions of the US the past couple months, domestic mills will have a hard time pushing prices down yet again in April; and for the time being, a sideways trend across the board appears to be the most likely scenario.

US domestic scrap prices in March were as follows: