US scrap market players are expecting lower scrap prices next month, mills and traders have stated.
“It appears the market will be down by $20-25/long ton due to the lack of new export business,” said one source in the Mid-Atlantic states.
“The foreign buyers have been very good at watching for dips in our market, and I think this pattern will continue. When they resume buying it has the effect of pushing the domestic market back up. Underlying it all is the fact that scrap supply is very thin. (It) makes for a very interesting situation,” he said.
Another source said shredded scrap prices have declined by about $10/l.t already from September’s $365-375/l.t (delivered mill), with the expectation they will decline by another $10/l.t in the next two weeks.
He and others report seeing negative momentum in the scrap market in general.