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?
The US ferrous scrap market for May shipment has basically settled, with the primes grades of #1 Busheling and bundles falling around $30 per gross ton (gt) from April levels. The obsolescent grades of HMS, shredded and plate and structural declined by $40/gt across several regions.
Ferrous scrap prices rose across the board in March as the market adapted to short supply and the volatile tariff situation, sources told SMU.
Domestic shredded scrap has experienced a renaissance in pricing since January. And that increase had caused traditional exporters to ship their material to domestic users instead of overseas. But with recent changes, this cycle may end with the resurgence of export demand and continued foreign exchange fluctuations.
The February scrap market has settled higher on all grades SMU covers.
US scrap tags rose for all the grades tracked by SMU in January in what was deemed a "restocking rally," sources said. The January market was up ~$20 per gross ton (gt) across the board. This did not include turnings, which were up $30/gt.
The US domestic ferrous scrap market had a rough 2024, despite optimism as the year started.
Ferrous scrap prices were largely rangebound to down at the November settle, market sources told SMU.
Scrap prices ticked up in October outside of Chicago and Detroit, scrap sources told SMU.
September scrap prices came in a soft sideways, with only mild hopes for a higher October, market sources said.
US scrap prices picked up in August, though near-term demand is expected to remain weak, scrap sources told SMU.
The US ferrous scrap market has essentially traded sideways for August. It may be too early to judge how much traction these prices will have with the trade.