After a brief delay in regional scrap buying, things are now virtually complete. There was some suspense during the middle of the week that a surprise in scrap prices from the larger mills was in store. Ultimately, however, nothing very dramatic happened.
The August domestic scrap market looks like it might settle early amid continued strong demand for melting stock from domestic steelmakers and high prices for finished steel.
SMU’s scrap prices came in soft sideways in July, according to market sources.
The US scrap market has settled soft sideways in July, sources told SMU.
The scrap market for July is partially settled except for the three largest scrap buyers in the country.
Ferrous scrap prices for June came in sideways, scrap sources told SMU.
Current scrap market sentiment is again divided as we enter the summer month of June.
SMU spoke with several market players around the country regarding the ferrous scrap market in June, with many sources seeing next month as broadly sideways.
US scrap prices were mostly flat in May, with some upside on prime scrap, sources told SMU.
The May scrap market took much longer to settle than most players anticipated, but the results are mostly in.
The export market on the North American East Coast has been firming after seeing a sale that climbed to $415.50 per metric ton (mt) CFR for HMS 85/15.
There are several factors buttressing the ferrous scrap market against it seasonal fall in the spring months. We all know about the Iran War and the rise in fuel costs. Other factors include strong steelmaking activity, rising steel prices, lighter inbound scrap flows, and firm export markets.
US scrap prices came in flat on busheling in April, while shredded and HMS both traded down, sources told SMU.
The US scrap market has largely settled at prices most predicted in late March. The prevailing view then: shredded and other obsolete grades, like HMS, would drop $10-20 per gross ton (gt) despite higher transportation costs. And prime grades, like #1 busheling and bundles, would trade sideways thanks to better demand and static supply. This is essentially what has happened.
The US scrap market softened in March as most grades traded sideways, with prices seen falling next month, sources told SMU.
US ferrous scrap prices continued to rise in February, scrap sources told SMU.
US ferrous scrap prices rise in February.
Ferrous scrap prices jumped on all the products SMU tracks in January, scrap sources said.
US ferrous scrap prices have picked up in December, sources told SMU.
November ferrous scrap prices landed even with October as the market settled, sources told SMU.
Most mills sought a drop of $20-40 per gross ton (gt) in busheling prices and a $20/gt dip for shredded and HMS. Despite efforts to buy cheaper, the busheling price settled at down only $20/gt.
SMU’s Current Sentiment Index for scrap decreased this month, a move mirrored by our Future Sentiment Index, according to the latest data from our ferrous scrap survey.
US busheling scrap prices have declined this month, while shredded and HMS tags have remained unchanged, according to market sources.
The scrap market in the US for September shipment has started to settle, with busheling seen down so far.
The scrap market traded sideways again in August with little change expected in September, according to sources.
Ferrous scrap prices are flat in the US for a second consecutive month, but tariffs on imports of Brazilian pig iron could change the game in August.
We can interpret that managed money still has expectations of price strength while physical participants are running closer to a balance on a net basis.
Ferrous scrap prices in the US have remained stable from May to June.
Ferrous scrap outlook for June appears on the upswing.
Domestic scrap prices tumbled across the board in May, but will June prove a bottom for the market?