US Scrap Prices Rise Sharply in March

A mill in Detroit took the initiative and joined the market with a bid that was more than $100/gross ton higher than in February for busheling. Other mills in the area that bid for the same grade at lower levels—about $60–70/gt higher than in February—failed to obtain material as a result. Busheling costs last increased by $100/gt a year ago. HMS prices jumped by more than $30/gt, while Midwest shredded prices increased by $60/gt from February.

In the South, price hikes for busheling and shredded products were $50/gt and $60/gt, respectively.

Scrap prices have seen support from exports, improved order books and higher steel prices in the US, as anticipated. Early indications point to April continuing to be a robust month.

Last week, proposals for US-origin HMS 1&2 80:20 scrap on the West Coast increased to $435/tonne cfr Taiwan, with bids at $425/t cfr.A few hundred to a thousand tonnes worth of small quantities were exchanged at $425/t cfr. However, US vendors started targeting the Turkish market, which constrained Taiwan’s supply. As a result, Taiwanese buyers are less interested in buying container scrap from the US and are shifting their focus to bulk scrap with a Japanese provenance.

Most US suppliers on the East Coast who aimed to ship HMS 1&2 80:20 at prices above $460/t cfr Turkey fell short of these targets last week. Participants did not consider a solitary booking last week at $462/t from the US to be representative of the market. Most Baltic-origin reservations for premium HMS 1&2 80:20 were at $456-457/t cfr.

It is verified that a northern Turkish mill reserved Canada-origin HMS 1&2 95:5 on Monday for $475/t cfr, while HMS 1&2 80:20 was priced between $463 and $465/t cfr. However, because of its location on the Black Sea in the north and the neighboring conflict in Ukraine, this mill charges more for freight.