UNITED STATES April 06 2017 11:26 PM
NEW YORK (Scrap Register): United States shredded scrap prices shot up by 15.1 percent month-on-month to $324.50 a long ton during the month of March this year, according to the Steel Index.
March Buy Week resulted in a gain for scrap prices as the TSI US Midwest Shredded Scrap 10-day average gained US $43 a long ton to close at $324 a long ton.
Finished steel prices have remained steady throughout the month of March with TSI’s daily US HRC index remaining in the $650-660 a short ton range.
The forward curve in the futures market for US HRC continues to remain in backwardation with late H2 2017 settlements below $600 a short ton.
Market participants on both sides of the transaction are expecting a decline in the scrap market for April settlements. Obsolete grades are predicted to lead the decline with prime grades following.
Mill utilization rates have dipped below 75% and global scrap markets have experienced weakness of late. The TSI Turkish Import HMS #1&2 80/20 Scrap Index lost $18 a ton over the course of the month of March ending at $265 a ton.