US scrap prices start to rebound in November
US scrap prices, which have decreased significantly since August, seem to have finally bottomed out this month.
Many scrap dealers believed that the scrap transactions that took place in the beginning of November were settled at prices that were too low, and with an up-tick in export activities also observed in the first days of November, US shredded scrap prices started to rebound.
Busheling and HMS I scrap prices have not moved considerably since the beginning of the month, but a few scrap dealers in the Midwest report that their domestic shredded scrap prices now range from $210 to $220 /lt. This price reflects an increase of $85 /lt since the beginning of November.
However, the export market has started to slow again as scrap demand is generally still very low due to the weak finished product markets.
But despite the recent slowdown in export activity and continued weakness in the finished product markets around the world, market sources expect that scrap prices will be higher in December than in early November. December is a short month in terms of scrap transactions, with many companies closed for the holidays; however, since the scrap inventories for the integrated mills are low, they will need to make purchases during the month in question in order to make sure they have enough inventory to last them through the winter.
In December, both domestic busheling and shredded prices are expected to move up by $80 to $90 /lt while HMS I may increase by $40 to $50 /lt from the prices in the beginning of November. At the beginning of November, US East Coast busheling scrap prices were ranging from $140 to $150 /lt. Shredded scrap was sold for $125 to $135 /lt and HMS I prices ranged from $100 to $110 /lt.
On the export side, scrap prices have already shown a considerable up-tick since the beginning of November. The most recent export deal concluded for HMS I/II 80:20 is $278 /mt CFR Turkey, while prices were concluded at $160 /mt to $170 /mt CFR Turkey at the beginning of the month.