By Paul Ploumis (ScrapMonster Author)
March 07, 2016 06:51:10 AM
SPOKANE (Scrap Monster): The US prime scrap prices are expected to trade modestly higher during the month, according to dealers. An uptick of almost $10/lt is expected, on the back of tight supply and positive pricing sentiment prevailing in the market, dealers said.
According to sources, scrap dealers are seen holding off their sales, in anticipation of taking full advantage of the tight supply situation and prevailing positive market sentiments. The prime scrap is expected to see modest uptick of $10 per long ton in at least some markets. The US scrap export prices have been trending higher during the past few weeks. However, the uptrend needs to sustain further, in order to have an impact on domestic prices.
Scrap dealers spot more tightness for obsolete scrap than for prime in Midwest region. However, prices are likely to move sideways. Dealers are seen patiently waiting for small rise in prices during the forthcoming weeks. Meantime, shredded scrap price has continued to remain flat at $190-$200/lt for delivery in Midwest mill. The prices are expected to remain flat in the Southeast region. However, Northeast, Detroit and Chicago markets are likely to show strength.
Market sources indicate that mill orders for scrap continue to remain weak, despite stronger order book for flat-rolled products. Some mills are short on scrap, they noted. The domestic market is likely to gain strength from the recovery in iron ore prices and the uptick in scrap exports. Buyers do not expect the scrap prices to decline. The sustained strength in export market may positively impact domestic prices, dealers added.