Prime scrap prices slip for September, other grades sideways

“There was an initial sense heading into the September market that all grades would trade sideways,” said the source.

Recall that prices have been stuck in the doldrums this summer.

However, this month there was an abundance of busheling, he said. He pointed to Canada as the source of the material, “where demand is low because steel mill business there is poor (tariff-related).” 

A second source said the Ohio Valley traded much like the rest of the country, sideways on shreds and cuts, and down $20 on primes.

“I am seeing a broader demand for HMS due to positive long product sales and new capacity now starting to seek supplies,” the second source said.

As trading continued, there were rumors of possible trends for down $40 from August prices on prime, and a “sympathetic $20/gt move” lower for obsolete grades, according to the first source. That did not materialize. 

He continued that “the largest US mill buyer was basically doing business at down $20 for primes and sideways for other grades, thereby establishing firm trends for the overall market.” 

“Demand for shred and cuts was apparently strong enough to keep them from dropping,” he added.

SMU’s September scrap pricing stands at:

• Busheling at $390- 420/gt, averaging $405/gt, down $20/gt from August.
• Shredded at $370-390/gt, averaging $380/gt, even with August.
• HMS at $315-345/gt, averaging $330/gt, level with August.

Outlook

Looking ahead, the first source said, “At some point in the next 3–4 months, we should see prices move higher as supplies contract seasonally.”

“This assumes consistent demand both from overseas and the US mills,” the source added.

For next month, the source doesn’t see any significant movement either way, noting that “sideways” is again possible.

The second source was more bullish for next month. “October looks stable, with optimism that prime grade pricing will go right back up.”