December scrap prices are expected to settle in the upcoming days, although sources note that price expectations for this month have shifted. Some sources say dock prices in Texas are now expected to soften, and mills in that region may be less inclined to pay more for scrap this month. As such, scrap prices in Texas could settle at sideways.
Also notable is today’s news that import scrap prices in Turkey have decreased sharply; SteelOrbis reported that a Marmara-based mill bought an ex-US cargo with HMS I/II 80:20 scrap standing at $485/mt CFR, for January shipment. Prior to this deal, workable ex-US HMS I/II 80:20 scrap prices were estimated to be around $495/mt CFR.
“In terms of what may happen in Ohio Valley, Western Pennsylvania, and on the East coast, it seems as if the bloom is off the rose,” a source said. “I no longer think that up $20-$30/gt on secondary grades will happen, and I even think that prime grade scrap has the potential to remain sideways, but I guess we'll have to wait and see."
Other sources pointed to news that JSW’s Mingo Junction mill will be taking an unplanned maintenance outage in December, which will reduce scrap demand within the region. “We don’t know how long that will last, but we are hearing that the inventory they have will get them through December,” a final source said.
Settled scrap prices are expected to emerge within the next several days.