US scrap prices land flat in August

One source sees tariff hiccups having mostly run their course. He said, “Supply and demand seem to be reasonably in balance now that we are through most, if not all, of the tariff developments.”

The source added that “steel production is as strong as it’s been in a year and scrap prices remain at relatively low levels if you look back to where they’ve been over the last 3-4 years.”

He doesn’t expect much change, though, come September.

“Overseas demand is stagnant and pretty lame, and domestic dynamics appear to be relatively stable,” he said. “Look out for tightening finished steel supplies in the US to keep US operating rates around 80%. That should be supportive of scrap over the next 30-60 days.”

After that, it’s really a question of demand picking up, the source added.

A second source agreed, also saying expectations for September are sideways.  

“I think everyone is hoping for higher demand on the finished side,” he noted.

Manufacturing sluggish

A third source reported that flows of industrial scrap have weakened due to summer shutdowns and lower manufacturing activity.  

“Obsolescent flows have shown some reduction as well,” the third source said. “This could lead to a supply-driven market where prices have a chance to increase if the operating rates continue at this level or higher.”

SMU’s August scrap pricing stands at:

• Busheling at $410-440/gt, averaging $425/gt, even with July.
• Shredded at $370-390/gt, averaging $380/gt, flat from July.
• HMS at $315-345/gt, averaging $330/gt, equal to July.