The current month’s buy cycle has been largely delayed due to the US election, sources note, adding that while there were some side deals that took place late last week and early this week, the bulk of activity is projected to take place today or tomorrow.
One source noted that while prime scrap would likely trade at sideways in the Midwest / Ohio Valley due to an abundance of availability, be believed that HMS, shredded and P&S scrap prices were positioned to firm.
“One of the mills we sell to came out at sideways on prime [grades] and up $10/gt on shredded and cuts,” he said. “There’s less availability for HMS, shred and P&S, which is why we think prices could come up.”
Others said they believed that sideways pricing was more likely.
“Delta [steel] announced at sideways,” one source said, while a second source said he believed that SDI would announce at sideways as well. “Based on some of the early trades we’ve heard of, it may be a situation where the ranges we saw last month start to shore up- and the ‘up $10s’ may be more about bringing the lesser paid guys up to the level where the higher paid guys were in October.”
Another source questioned whether scrap dealers would balk at sideways pricing, and attempt to take the market up. “The mills are making decent margins and there’s no reason that scrap couldn’t come up this month,” he said.
A final source agreed that while scrap prices could come up, that he feels that sellers will be happy to accept sideways. “The bottom line is that we have maybe 1.5 weeks left in November, if you account for Thanksgiving, and December is essentially a 2-week month.”
Settled scrap prices are not expected to emerge until late today or early tomorrow.