UNITED STATES June 13 2016 7:20 PM
NEW YORK (Scrap Register): US shredded scrap prices surged coming into May, chasing the tail of sharply improved hot-rolled coil realisations in the domestic market. However, final prices varied greatly across the domestic market, and the index pulled back from the initial high of $293 a long ton in the first week to end the month at $270 a long ton, according to the Steel Index.
The beginning of the month saw prices increase 13.1% as mills cited strong demand, limited availability of scrap as well as potential raw material supply constraints in the summer months as factors that contributed to the price surge.
The end of buy-week saw prices drop again however, as the domestic market experienced price disparity between regions as prices settled in a wide range. Sellers were also naturally disappointed that the domestic US Midwest prices did not reach the levels of those seaborne markets.
With the export market coming to a halt, suppliers of scrap attempted to ship more material to their domestic customers on their May order books, resulting in mills turning down additional volumes. This provided evidence of an oversupplied market, leading market sources to believe that scrap prices will come under pressure in June.
