US scrap market struggles in doldrums

Thus far, there has not been many outages announced. One has been announced is a 21-day shutdown at Gerdau, Midlothian, Texas. Sources have pointed to two other possible outages in September. There will probably be others during Q4.

SMU contacted a purchasing executive in the Great Lakes region to get his slant on the scrap market.

He does not see any movement of prices in September. 

The source said, “Steel mills are busy enough to run, but not busy enough to pay up money for scrap.”

He did also mention Q4 shutdowns could weaken scrap prices come October.

Another source SMU spoke with in the Southeast area is also in the “sideways” camp.

He said scrap flows have been steady in August, despite a gradual slowing over the last several months.

The August scrap market in the South was bolstered by a large scrap program at Big River Steel in Arkansas. There was moderate buying by the new mills, which are still ramping up. These include Hybar in Osceola, Ark., and ArcelorMittal in Calvert, Ala. Eventually, this new capacity should enliven activity in this region.     

But, for now, things are stagnant pricewise and look to remain so until later this year.