The dust may have settled within the US domestic scrap market after prices trended down across the board for the second month in a row, but while some believe the market could rebound after the first month of the new year, “it’s going to be a very long time before we see January 2014 prices again.” At best, sources hope the market will rebound to October levels, but many say it is highly unlikely it’s going to jump beyond that.
A big thorn in the side of the US domestic scrap market ties into export pricing. SteelOrbis sources say Turkish producers are still bearing the brunt of a downward pricing trend for finished steel products, which in turn has placed an “almost daily” decline in Turkish import scrap prices. And although US export yards are pushing to have mills accept higher-priced offers, they are likely to be met with resistance until Turkish finished steel pricing improves. “If exporters get prices up, that will definitely help the domestic market,” said one Midwest-based source, “but I don’t know if I see that happening anytime soon.”
For now, prices in the Philadelphia region continue to hold at $295-$300/lt for HMS I/II, $310-$315/lt for shredded and $360-$365/lt for busheling, while Pittsburgh/Cleveland/Canton area, prices for HMS I/II remain at $315-$320/lt, while busheling has held at $360-$365/lt. Chicago shredded scrap prices remain at $325-$330/lt, with busheling trending sideways at $360-$365/lt.