Scrap Prices North America
March ferrous scrap market: Trends and turmoil
Written by Phil Hoffman
March 11, 2024
As I see it, the market looked to be a perfect storm for consumers this month while two large steel mills tried to put a floor on hot-rolled coil (HRC). One source speculated that “flat rolled mills coordinated their downtime and will take out 250,000 tons of capacity in April,” which made them attempt to put a bottom on flat-rolled product.
In the Rocky Mountain region, it turns out the mill that significantly reduced their scrap buying program in February did come back into the market in March, albeit at about 50% of their normal program. They intend to return to their full purchase program in April, which may help put a floor on the Texas/Gulf region for the month.
However, that didn’t stop the Texas/Gulf markets from coming down significantly in line with the rest of the US in March. Several sources confirmed local Texas mills were down on HMS, shred/plate and structurals (PNS) and busheling– $40, $50 and $60, respectively– making HMS at $360-365 per gross ton (gt), shred/PNS at $390-395/gt, and busheling at $390-400/gt. One mill does have to pay $410-415 for busheling as they are a relatively long way from the Houston area.
On a related note, one bulk sale to Turkey did come out of Texas at $376 for HMS and $396 for bonus/PNS, which seems to be the lowest U.S. bulk sale to date. Houston dock prices moved accordingly and seem to be at the $290 level for HMS.
On the US West Coast one major Taiwanese mill was confirmed to bid $348 CFR for containerized HMS but no deals were executed at that price. West Coast suppliers are getting offers at $340-345 FAS, which is $352-357 CFR. Vietnam is still waiting because of lowered billet and longs prices in Vietnam due to slack demand and Chinese imports. However, the Vietnamese government did institute a stimulus package that could boost steel demand as early as April. In addition, the Yen stands at 147 to $1 on Monday, which seems to be stable. Given the resistance to $348 and the value of the Yen, we could also be looking at a bottom for exporters to Asia.
Phil Hoffman
Read more from Phil HoffmanLatest 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.