As SteelOrbis previously reported in mid-October, US domestic scrap prices were expected to trade strong sideways inland and potentially slightly up in the East coast on export support.
According to the latest conversations with sources, SteelOrbis has been informed of revised expectations of strong sideways in the Central Midwest region, soft sideways in the Midwest and Pennsylvania regions, and soft-sideways in the East coast region. A source stated, “Export yards are resisting $300/mt CFR Turkey on HMS I/II 80:20. Export scrap prices on the East coast are still better than domestic. Domestically, I expect soft sideways in November.”
Sources also inform SteelOrbis that prime scrap grades such as busheling may likely experience downward pressure due to the return of DRI supply into the market, as Nucor’s DRI plant came back online after suffering an unanticipated outage in late July that lasted longer than the initially forecast period. Additionally, the decline in imported pig iron prices is also expected to minimize the recent wide spread between shredded and busheling scrap prices.