Prices
Prime Scrap Prices Flat in October, Other Grades Edge Down
Written by Ethan Bernard
October 12, 2023
Prime scrap prices were unchanged in October, following a large Detroit-area buyer’s lead, according to market sources.
“Prime scrap was generally sideways as mills did not want to miss any at what will likely be the last, best buying opportunity for prime scrap this year,” one scrap source said.
However, the market developed unevenly across the country. Shredded fell between $10 and $20 month over month: -$10 in the East, -$10 in the South, and -$20 in Ohio, he said.
Cut grades were generally sideways in the East, the source said. But plate and structural seemed to be in better supply than #1 HMS, he added.
Looking ahead, another source said: “I don’t think the mills can take down scrap further in November.”
He said there is also dealer resistance to the October prices. “Most dealers want to take an order in November that will last them through December.”
The second source said the dealers “know winter scrap flows will dwindle, and the scrap market in January usually goes up.”
On the exports front, the first source said export pricing is drifting amid a lack of demand for Turkish rebar.
“We have seen prices move marginally lower so far,” he said. “But scrap flows are tight so I don’t expect any major downward moves.”
October Scrap Settlement
Our October scrap prices stood at:
- Busheling at $380-420 per gross ton, averaging $400, unchanged from September.
- Shredded at $350-390 per gross ton, averaging $370, down $20 from September.
- HMS at $300-340 per gross ton, averaging $320, down $10 from September.
Ethan Bernard
Read more from Ethan BernardLatest in Prices
Final Thoughts
Most steel buyers think that steel prices will continue to rise into the 2026. But they don’t see the kinds of big gains that have characterized past market upturns, according to the results of SMU’s latest steel market survey.
SMU Survey: Mills less negotiable on spot prices
Most steel buyers responding to our market survey this week reported that domestic mills are considerably less willing to talk price on sheet and plate products than they were in recent weeks.
Price gap between US HRC, most imports narrows slightly
In dollar-per-ton terms, US product is on average $141/st less than landed import prices (inclusive of the 50% tariff). That’s down from $148/st last week.
SMU price ranges: Sheet ticks higher, plate stable
Sheet steel indices increased across the board this week, while plate prices held steady. All five of SMU’s price indices are higher than they were two weeks ago, and all but one are above levels recorded four weeks ago.
Nucor lifts HR spot price by $10/ton
Nucor has raised its weekly spot list price on hot-rolled coil by $10 per short ton (st) after keeping it unchanged since Aug. 25.