Sentiment in the US domestic scrap market has not changed much since last week, with most sources still expecting a sideways trend for most grades.
However, consensus is growing at the possibility of a slight uptrend in busheling scrap prices, despite the fact that US domestic HRC prices are still somewhat stabilized. Sources tell SteelOrbis that US domestic flats mills might try to raise spot prices in the near term, but the market is “unlikely to accept it for more than a month or two.”
Without the backing of strong flat steel prices, sources say any busheling scrap price increases in May will be modest, in the $10-$20/gt range.
Additionally, sources report scrap flows are slightly slow, especially industrial flows and scrap on the East coast, but there are still pockets of decent supply in the market heading into May.