Scrap prices slide in December, lift coming in January?

“Northeastern coastal markets were down $20 for the most part for cut grades, maybe a little less for shred, and down $10 for primes,” he said. “Not much demand there.”

At the same time, the Pittsburgh markets were lower by $20 pretty much across the board for shred and cuts – except for one mill which needed scrap, and paid down $10 for shred, he said.

For the South, it was uniformly down $10 pretty much as well, he added.

“The Midwest was down $10 for shred and sideways for primes, but those areas did not see price increases in October like other regions did,” the source said.

Another source said the “narrative now is pretty much all the mills in central/northern US have the same delivered prices.”

SMU’s December scrap pricing stands at:

• Busheling at $375-410 per gross ton (gt), averaging $392.50/gt, down $12.50 from November.
• Shredded at $355-385/gt, averaging $370.00/gt, down $17.50 from November.
• HMS at $300-330/gt, averaging $315.00/gt, down $12.50 from November.

January outlook

With the firming of the export market and winter weather, “the market for January could strengthen beyond recent expectations,” a third source said.

The first source predicted that January ferrous scrap prices would move a little higher. “But I don’t expect a sharp move unless demand is much stronger than what we see today.”

However, he said, “I think demand for scrap will most certainly be improved from December.”

But he wasn’t certain “how much shred volumes were cleared in December or if they will need to be offered again in January.”

“If there is any overhang, I don’t think it’s significant,” he continued.

Finally, he said, “What we also need is improved demand for US finished steel, and we are a ways away from that today with inventories still rather higher in historical terms.”