US scrap prices have gone sideways to slightly down in the beginning of March, depending on grade and region.
Compared to prices in early February, both shredded scrap prices and HMS I prices have stayed neutral while busheling scrap prices have come down slightly by approximately $5 to $10/lt ($4.92 to $9.84/mt) in the beginning of March. On the East Coast, current busheling scrap prices are in the level of $475 to $485/lt ($467.50 to $477.34/mt), shredded scrap prices are at $450 to $460/lt ($442.89 to $452.74/mt), and HMS I prices are between $435 and $445/lt ($428.13 to $437.97/mt).
As the buying activity was slow in the US export scrap market in February, the early anticipation for March domestic scrap prices was to drop as much as $20/lt ($19.68/mt). However, the US export scrap market began to firm up in the first week of March, preventing the domestic US scrap prices from dropping. On the other hand, scrap supply is still short while domestic scrap demand remains decent with increasing capacity from the US domestic mills, supporting the domestic scrap prices to stay relatively neutral in early March. Some market sources expect the US scrap prices will strengthen along with the export scrap market in the middle of the month.
Similar to the US scrap market, pig iron market has stayed more or less the same as well. The most recent pig iron transaction was concluded at $545/mt FOB Nola. Lack of pig iron supply from Brazil continues to allow the pig iron prices to stay at high level. It is heard that some Brazilian producers will raise the pig iron capacity, so pig iron availability is expected to see gradual increase in the coming months.