Scrap market sources throughout the US say they still believe that August prices are likely to trend sideways. And while this week’s news that an export cargo to Turkey was transacted at $355/mt CFR, sources do not believe this will have an impact on domestic pricing during next month’s buy cycle.
“I think it’s a sideways market at this point. I don’t think the export drop has too much of an impact to create a down market but perhaps supports sideways pricing,” a source said. “I think mill demand will still be relatively stable. Flows seem modest (not great or awful) which points to more of a sideways market.”
Others agreed.
“I still believe flows are slow enough that scrap stays at strong sideways,” a second source said, while a third said he too, believes that a sideways market is in order for August.”
The August buy cycle is expected to start in approximately 2 weeks.