Scrap Prices North America
Miller on scrap: Mid-month dealer sentiment focus on uncertainty
Written by Stephen Miller
February 23, 2024
The Mid-American ISRI Chapter held its annual meeting in St. Louis this month. Over the years, this event has become a “must attend” for the scrap community nationwide.
According to several attendees whom SMU spoke with after the meeting, there was uncertainty about where the ferrous scrap market was heading.
There was concern about domestic demand with sheet prices falling and at least one major mill outage in March. This could have a weakening effect on scrap prices. On the other hand, some scrap buyers are still seeking scrap, especially for #1 busheling in the Southeast region. It is unclear if there is enough supply of industrial scrap to go around.
Another concern is the decrease in prices for exports into Turkey. In recent days, European cargoes of HMS 80/20 to Turkey have dropped to $406 per metric ton (mt) CFR. The last cargo sold from the US was at $414/mt. This number could drop on the next round of sales, if there is no resistance from the export community.
With the month of March approaching, the supply of obsolescent scrap should increase on into April as “spring cleanup” will be well underway. These are seasonally weak months for scrap. The scrap community seems to be expecting prices to fall in March and April, the uncertainty being by how much. SMU will continue to keep our readers updated on what actually transpires.
Stephen Miller
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