Rumor has it (if you believe those sort of things), the US ferrous scrap market price is gearing up for robust trade, with sellers inspired by the prospect of increases in the cards while buyers are trying to talk some steam out of the market.
Sellers and buyers do agree that the market is moving higher, but whether all grades will rise in tandem in each region remains to be seen, as well as whether prime continues to outpace secondary grades like shredded or if the reverse will occur in some areas.
buyers in the Midwest and South said that sellers are unwilling to attach a price to their scrap, leaving buyers unclear on how much dealers want for August-shipment material.
Throughout the country, the numbers being thrown around are that the market will increase in a range of $10 per gross ton to excess of $20 per ton, depending on the grade and region.
A combination of an unplanned outage at a direct-reduced iron (DRI) plant in Louisiana owned by Nucor Corp. will add pressure to an already tight prime scrap market, while secondary grades are facing their own set of dynamics as the export market flexes muscle at attractive prices. The latest export deal reflects shredded scrap is up at least $30 per tonne compared with early July deals, making the export market an attractive option for sellers who generally sell to the domestic market.
Mills remain busy, with operating rates currently at 75.9 percent.
Export activity from both coasts is strong, the national broker said.
“After export, (the) Chicago market is the next-cheapest market to go and pull scrap,” this source said of Chicago prices being lower than many other areas, which could make it ripe for offers from the larger national mills.
Lets hope this is good news for the rest of us, there’s always hope.