US domestic scrap prices have stayed sideways to up by as much as $15/lt ($14.76/mt) in the beginning of July, depending on grade and regions.
US domestic scrap prices have trended in different directions in the beginning of July--in the Midwest, busheling scrap prices have gone up by as much as $10/lt ($9.84/mt) while shredded scrap and HMS I prices have remained neutral, and on the East Coast, prices for busheling scrap, shredded scrap and HMS I have stayed sideways to up by as much as $15/lt ($14.76/mt) when compared to early June prices. According to SteelOrbis' price index, East Coast busheling scrap prices have increased by $5/lt ($4.92/mt) whereas shredded scrap and HMS I prices have gone sideways. Currently, East Coast busheling scrap prices are in the level of $515 to $525/lt ($506.87 to $516.71/mt), shredded scrap prices are in the range of $455 to $465/lt ($447.81 to $457.66/mt), and HMS I prices are between $425 and $435/lt ($418.29 to $428.13/mt).
US domestic scrap demand is steady with stable scrap purchasing activities, although some domestic mills claim their scrap inventory levels are comfortable for the time being. Some market insiders expect that scrap demand will grow later this year as auto production increases.
However, scrap demand from foreign countries is slow, causing US export scrap prices to soften. With the weakening export scrap prices, industry insiders believe it may lead to a possible downward trend on US domestic scrap prices in the next 60 days.
On the other hand, pig iron market stayed relatively the same from a month ago. Pig iron prices remain in the level of $540 to $545/mt CFR Nola. There is not a lot of pig iron buying activity in the market at the moment, but because the Brazilian pig iron supply continues to be tight, it is anticipated that a pig iron supply shortage will be seen in the market when most domestic mills purchase pig iron at the same time to secure for their fourth quarter inventories.