US shredded scrap tightness brightens market outlook for August

Ferrous scrap prices appear to have reached a bottom in the United States and many market participants believe that while August will unlikely bring a meaningful increase, the tightness in shredded scrap hints that a recovery could be closer than initially expected.

Shredded scrap supply is currently tight, with several mills still in the market for material for July, sources said. A large national broker purchased a barge of shredded scrap at $285 per gross ton delivered from the East Coast to a mill in the Carolinas - $17 higher than the $268-per-ton monthly settlement for steel scrap shredded auto scrap, consumer buying price, delivered mill South Carolina on Friday July 5. "I don't know how true it is but [a large national broker] and several other mills raised their prices for shredder feed [by] $5-10 [per net ton]. Seems they cannot buy the tonnage they want?," according to a Southern shredder source, who was skeptical that the small increase could have a meaningful impact on his inbound flows - which have been "way off." Mills did not have an easy time filling their programs this month due the US' Independence Day holiday on...

Published

Mei Ling Toh

July 10, 2019

23:23 GMT

New York