Scrap market prices in the US may have just settled, sources note, but many suspect that a positive price trend could emerge in August.
“I haven’t heard anything specific as of yet but demand still looks good and it’s doubtful that prime scrap supply will be impacted by [Steel Dynamics’ outage at its Sinton, TX mill] this month] enough to keep the market from rising,” a source said, adding that with the hot temperatures expected in many parts of the country this month, which may impact demo and scrap yard productivity, could lead to favorable price conditions next month.
Others largely agree.
“I think prices look to increase slightly [in August] unless we see flat rolled collapse, but it feels like the next few weeks are going to be supported by solid demand,” a second source added.
“I believe we’ll see rising prices,” a third source said. “I believe [flat rolled] steel prices have bottomed and will head up modestly.”
Both sources said that although export is still a point of concern, that “the domestic situation is likely to influence stronger export sales in time.”
A final source also referenced recent stability in HRC prices, adding that this may drive stronger order entry and thus, scrap demand.
“Inbound scrap flow has definitely softened and we’re watching that closely,” he said. “Domestic scrap is still tight and some mills are still looking for HMS, shred, and turnings.”