Scrap Prices North America
Domestic scrap tags soar in December
Written by Ethan Bernard
December 12, 2023
US scrap prices shot up in December and are expected to continue their rise in January, market sources told SMU.
“Dealers dug in, and export prices continued to rise through the December trade to push domestic US prices considerably higher than initially expected,” one source told SMU.
The first source commented that cut grades rose only about $30 per gross ton (gt) “as other grades for flat-rolled mills were in better demand.”
He said that prime increases, though, were generally $50-60 per gt in most areas, though there were deals for prime in the Midwest that caused the indexes to jump higher.
A second source noted that some dealers “naively” sold at up $50, not realizing the supply constraints for prime scrap.
“Going forward, if the mills want to buy anymore scrap for December, they’ll have to make up this difference, and then some,” he said.
As for what drove the hike, the second source cited the lack of supply of automotive industrial grades like busheling and #1 bundles due to the now concluded United Auto Workers strike, along with increased demand for those grades.
“Also, stockpiling for severe winter months to a lesser degree,” he added.
Looking ahead to the new year, he said, “Everybody knows prices will continue upward in January.”
The first source agreed, expecting that scrap prices will move higher next month.
“But I would not expect December-style increases as more tons will come to market in January albeit to feed likely better demand too,” he added.
A third source noted a lot of “drama” in December pricing. He said December was “certainly a very strong increase, with every expectation that January will be higher.”
December scrap settlement
SMU’s December scrap pricing stands at:
- Busheling at $480-520 per gross ton, averaging $500, up $85 from November.
- Shredded at $450-470 per gross ton, averaging $460, up $65 from November.
- HMS at $360-400 per gross ton, averaging $380, up $30 from November.
Ethan Bernard
Read more from Ethan BernardLatest in Scrap Prices North America
RMU: The most underappreciated scrap grade
Over the last several years, I have noticed widening spreads between #1 Heavy Melting Steel (ISRI 201) and Shredded (ISRI 210,211), as well as Plate & Structural (ISRI 232).
Domestic scrap tags flat in April
April scrap prices came in sideways in the US, sources told SMU.
RMU: Interest rates, weather hit Radius Recycling’s earnings
Low manufacturing activity and higher interest rates took a toll on Radius Recycling’s profits during the Oregon-based company’s most recent quarter. Radius reported a net loss of $34 million, or $1.19 per share, during its fiscal second quarter. In the previous quarter, Radius saw a net loss of $18 million, or 64 cents per share.
RMU: Northern buyers enter April scrap market sideways
Several large buyers in the North came into the market on a sideways basis from prices paid in March. The development comes after recent speculation about what prices US-based steelmakers would pay for scrap for April shipments.
Miller on scrap: Market seeks direction ahead of April buy
On the eve of the April ferrous scrap buy, there is no firm consensus on the market’s direction. The safe predictions are “soft” sideways to “strong” sideways. That may mean down $10 per gross ton (gt) to up $10/gt.