March/April Scrap Steel Price Trends
Comments provided courtesy of SteelOrbis
The Chicago Shredded Scrap finally posted down $20/ton from the prior month at $388/ton ending a long month of uncertainty and severe shifts in overall market sentiment. At one point in the last month, it looked as if scrap would “fall off the cliff” as mills were buying virtually nothing and demand in the market was non-existent. Then without notice, in the last week, the market reversed course stabilized and in several areas and grades even improved to reach where it finally settled. Much like the month prior, while there was not much demand for scrap, there also was no much supply due to the frigid winter causing collection problems.
Now that petitioners were successful in levying a duty, watch for import prices to increase dramatically. The anticipated surge of import to “beat” the April 18th deadline did not appear as dramatic as originally anticipated as few volumes being recently booked. Lagging sales in the last 6 weeks with the season and weather coupled with pricing that offers no new advantages have soured most big buyers appetites and nothing has been concluded.