Tag: Ferrous Scrap

Ferrous scrap prices rose in November across all grades SMU tracks, though prices varied widely by region. “Marketwise, we saw disparate market movements between regions in the November trade, which wrapped up earlier this week,” one source told SMU. “It was a mixed bag, depending on the region and grade.” The source added that export pricing also rose over the course of last week, “but much less than the domestic market.”  Demand from US mills is strong and “there is probably more lift to be expected in the market between now and the January trade," he continued.

Steel production has been suspended at a facility of Turkish steelmaker Habas following a deadly explosion, a source told SMU. SMU spoke with a source in Turkey who provided some further information after the incident at the mill in Aliaga, Turkey, occurred on Monday. (For background on the incident, click here.)

Every month, SMU polls participants in the ferrous scrap market on a variety of topics, including prices. This month's survey results landed just as the November scrap market was starting to settle. Preliminary results show scrap prices rose across the board for all the products SMU tracks. Final prices will be in SMU later this week. As the final numbers come in, we'd like to share where survey respondents thought prices would be on busheling, shredded, and HMS scrap, as well as where they see prices heading over the next 60 days.

An explosion at a Turkish steel mill has the potential to impact several national ferrous scrap markets, including the US. On Monday, a serious accident at the Habas steel plant in Aliaga, Turkey, resulted in the deaths of at least 16 people, with 13 seriously injured, according to the Office of President Erdogan of Turkey. Authorities have launched a judicial and administrative investigation. According to government sources, an overhead crane fell into an electric arc furnace (EAF). This triggered an immense explosion that caused multiple deaths and injuries to workers on the ground. It also caused extensive damage to the steelmaking operations at the mill.

November scrap procurement has commenced in the US with buyers divided on the price increases from the previous month. Several mills reportedly sought a rise of $20 per gross ton (gt) while others saw $30/gt as the number. The $30/gt price tag mainly applies to the obsolete grades, like shredded, P&S and #1 HMS, with prime grades pulling up the rear at $20. SMU spoke to a Chicago-based source who said that market was up $30/gt and 20/gt on shredded and busheling, respectively. He also mentioned the integrated mills in this district are after heavier grades like P&S and railroad grades, like wheels. These grades have been in short supply since last summer. Our source believes they commanded prices up $30/gt while busheling was at plus $20.

SMU’s Current and Future Scrap Sentiment Indices slipped in November, according to the latest data from our ferrous scrap survey. SMU’s Current Scrap Sentiment Index dropped four points to +84 this month. The index last touched +84 back in July. The low for this year so far was in January when Current Sentiment stood at +73.

SMU’s November ferrous scrap market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the Pricing and Analysis tab and look under the “survey results” section for Ferrous Scrap Survey results. Past scrap survey results are also available under that selection. If you need help accessing the survey results or if your company would like to have your voice heard in our future surveys, contact smu@crugroup.com.

There has been an upsurge in Turkish deep-sea scrap buying over the last week for December shipment. Prices paid increased but not as much as the trade expected.cDuring the last week, Turkey-based steelmakers bought at least seven cargoes, largely from the UK and Northern European suppliers, while virtually shunning higher priced US scrap. The initial wave of sales of HMS 80/20 ranged from $395-$398.50 per metric ton (mt) on a CFR basis. This equated to an average increase of less than $5/mt. The was one cargo bought later at $401/mt from this region.

Most SMU scrap sources are predicting a stronger scrap market for November. The increase in prices is generally thought be $20-30 per gross ton (gt) in most districts. However, there are differences of opinion about the upcoming price settlements. SMU spoke with a trading source in the Great Lakes region who told us mills in the Eastern Ohio and Western Pennsylvania regions are short on scrap. At least one buyer is offering to buy scrap at a $30/gt increase from October levels. He said most dealers have elected to wait to see where things settle before making commitments.

In this week's Steel Market Chatter, we explore manufacturing and service center buyers' comments about demand, prime scrap, the Iran War, and expectations for Section 232 tariffs in USMCA negotiations. We'll share a selection of the comments we received in each buyer's own words. Dive in with us into the results and findings of our latest Flat-Rolled Steel Survey.

The situation in Turkey for procuring ferrous scrap for its steel industry is facing some difficult times. As obsolescent scrap flows start to abate in Northern Europe and the US with the onset of the winter and the holiday season, the price of buying scrap for this period is trending upward. The domestic market in the US is expected to rise in November, possibly in December, and definitely in January as the US melt rate shows no signs of lessening. In Europe, the main problem is supply as the Turkish mills have leaned on this region heavily over the last two months rather than sourcing enough higher priced US cargoes. The European suppliers can only sell what is convenient at this point without an increase in price.

Scrap prices will probably rise in the US in November, market participants told SMU. It’s just a question of by how much. The expected gains next month come after an extended settlement period in October. Initial bids of up $10–20 per gross ton (gt) failed to attract enough scrap, and buyers eventually settled for prices up $20–30/gt. And several sources have indicated that a few mills had to pay even more to fill in their needs as the month has gone on.

The pig iron trade from Brazil into the US has been lackluster over the last month with minimal activity. Many players in the trade thought activity would increase after the International Iron Metallics Assn (IIMA) meeting in Chicago earlier this month, but it has not materialized so far. Part of the reason could be the US scrap buy for October stretched out longer than usual, as buyers and sellers haggled over price. Now that prices settled upward, there may be different ideas on where pig iron prices should settle.

The spread between domestic hot-rolled (HR) coil and prime scrap prices widened for the 13th consecutive month in October, hitting another multi-year high. SMU’s hot-rolled (HR) coil price stands at $1,280 per short ton (st) on average this week, up $10/st from last week and a $40/st increase from a month earlier. Meanwhile, busheling averaged $480 per gross ton (gt) in October, rising $12.50/gt higher from September.

Ferrous scrap prices rose in October as the market grew firmer, scrap sources said. “Overall, the main drivers of this October were strong US mill demand and order books, an export market that had risen over the course of September but has now pulled back slightly, and the season,” one source told SMU. He said at this time dealers and mills anticipate that scrap flows will begin to slow down moving into the end of the year.

SMU’s October ferrous scrap market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the Pricing and Analysis tab and look under the “survey results” section for Ferrous Scrap Survey results. Past scrap survey results are also available under that selection. If you need help accessing the survey results or if your company would like to have your voice heard in our future surveys

SMU’s Current and Future Scrap Sentiment Indices were stable and trending up in October, according to the latest data from our ferrous scrap survey. SMU’s Current Scrap Sentiment Index was unchanged at +88 this month after declining five points in September. The sideways result is still tied for the second-highest level year-to-date.

Ferrous scrap prices appear to be up in October as trading gets underway, according to preliminary reports from market sources. One source said a Detroit-area buyer purchased shredded and plate and structural (P&S) at up $20 per gross ton (gt), with busheling up $10/gt. A second source said shredded and cut grades look like they'll be up $20, but trading hasn't begun in earnest yet as of Tuesday morning. 

The October market for domestic ferrous scrap is viewed with optimism mainly by participants on the selling side

There has been sustained export activity from the US on both the East and West Coasts. Prices have continued to rise, influenced by several factors, including elevated freight costs and firming markets in exporting countries.  

Alter Trading Corp. has purchased the operating assets of Iron and Metals Inc., located in Denver.

With the recent surge in steel prices and the increased melt rate, the price of ferrous scrap has only marginally improved.

The scrap market for October is looking for direction as some participants on both sides of the furnace are indicating scrap prices are poised for an increase.

Every month, SMU polls participants in the ferrous scrap market on a variety of topics. These include prices, business conditions, and tariffs, among others.

SMU’s Current and Future Scrap Sentiment Indices fell in September, according to the latest data from our ferrous scrap survey.

The spread between domestic hot-rolled (HR) coil and prime scrap prices continued to widen in September. It is now up for a 12th straight month, and at the widest gap since January 2022.

The prices for export scrap from the US East Coast jumped by $5 per metric ton (mt) on recent sales.

SMU’s September ferrous scrap market survey results are now available on our website to all premium members.

SMU’s September scrap prices for shredded and HMS came in sideways, with busheling tags increasing slightly.

Ferrous scrap prices have landed largely sideways this month, sources told SMU. The market quickly settled on Wednesday as 90% of the buying concluded, according to sources in several districts. It appears steelmakers decided there was no point in possibly disrupting flows with their strong forward order book and exceptional spreads between finished steel and current scrap costs.