June United States ferrous scrap rates opinion transforms favorablePosted by Lambert MacGregor on January 26th, 2021 June United States ferrous scrap pricing assumptions reinforced this week, as dealers continued to report limited accessibility as well as mill demand inched up, market sources stated Friday. Constrained scrap flows have actually been further influenced by a flurry of export activity this month. Official June procurement settlements could start as early as next week. Shredders increased feedstock costs by as long as /lt today, while one major consumer was heard to have actually been using rates /lt higher than May negotiations for prime material. " Our stocks will be lower on June 1 than they were on May 1," one Midwest dealer stated. "On top of that, you have second grades relocating off as a result of increased need from Turkey. Export docks do not have much on the ground. ATMP na5 /Detroit areas will certainly have lowered circulation of prime in July because of summer season car plant shutdowns." One more market source thought the scrap shortage is just in minimal locations. " I do not see any type of concerns with scrap supply," he stated. "Flow is great and also increasing. Any type of tightness in scrap will certainly be local. Midwest absolutely sounds stronger currently." Others agreed that any possible rate boost in June would certainly be much more considerable in the Midwest that other areas. The completed steel market has further increased belief as mills officially revealed cost increases over the previous a number of weeks for all significant items. " Appears to be solid, especially in the Midwest. I am listening to [it] can [be] up plus [/lt]," one mill resource stated. "Perhaps extra like [in the Southeast] Scrap supply is tight in the south, and I think that steel demand has actually increased-- needs to be for all these rate announcements on rebar, plate and sheet to stick." Scrap export prices ex-US to Turkey got to 0/mt CFR Turkey earlier this month prior to declining to around 0/mt CFR on Friday. " I believe that despite a little pullback in Turkey there will certainly still be a rigidity in scrap accessibility in June," an additional dealership said. "That ought to set the stage for a strong sideways market in the majority of areas. I do not see a huge upside, however sideways to up is reasonable." An additional dealership claimed: "We are in an up market. The EAF stores need scrap, their thaw prices are doing truly well. The anchors are pulling material. The EAFs may not have actually prepared for how much material has actually flown to the anchors."Like it? Share it! More by this author |