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.
Earlier this week, several steelmakers entered the market with prices for shredded, plate and structural (P&S), and heavy melting steel (HMS) up $20 per gross ton (gt) from September. Prices on prime grades were initially missing but were then reported as up only $10. This occurred in select regions, mainly in the northern tier. As the week went on, expectations were that the rest of the market would follow suit. But this has not been the case.
The October market for domestic ferrous scrap is viewed with optimism mainly by participants on the selling side
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 September scrap prices for shredded and HMS came in sideways, with busheling tags increasing slightly.
August has been quiet thus far, with scrap suppliers working on completing their current orders as signals of a weaker September start to appear.
SMU’s scrap prices remained largely flat to down in August as demand remains steady.
A sampling of responses and slides from our most recent ferrous scrap market survey.
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.