US Shredded Scrap prices plunge to $282 a long ton in February

UNITED STATES March 13 2017 11:16 AM

NEW YORK (Scrap Register): United States shredded scrap prices plunged by 8.1 percent month-on-month to $282 a long ton during the month of February this year, according to the Steel Index.
February Buy Week saw a deviation from the recent upwards price trend from the end of 2016 as the weekly US Shredded Scrap Index declined nearly $30/l. Ton.
Much of that decline was due to the extended decline in the Turkish scrap market leading up to Buy Week, rather than weak demand or other negative market conditions. 
During the Buy Week, however, the Turkish market experienced a reversal which lessened the decline in the US market settlements considerably—original market expectations were for the market to decline greater than $30/l.ton.
On the finished steel side, the TSI Midwest US HRC index held broadly steady through the month, declining slightly towards the end of the month to $620/short ton. The US HRC forward curve is in backwardation in late Q2 and continuing through H2 2017.
Market participants have been awaiting the March buying period and expectations have ranged from $30-$50/ l.ton up on shredded scrap and potentially higher on prime scrap, depending on availability.
New market entrants continue to buoy demand in the scrap market, vindicating early expectations of a rise in March prices. Strong mill demand has been noted as the largest driving force behind the anticipated scrap price increase.