The Institute of Scrap Recycling Industries’ (ISRI) Mid-America Chapter held a Consumers Night banquet this week in St. Louis, Missouri, and the consensus among attendees was that US scrap prices will likely trend downward in March.
One attendee at the event told SteelOrbis that the overall mood is somber, and said he’s not sure if service centers will buy or wait—for example, if the service centers wait, the EAF mills may dial back production, which could mean lower scrap demand.
Another attendee told SteelOrbis that a $20-$30/gt scrap decrease across the board is likely, adding that there are gaps in order books and demand might be off slightly. He also said pig iron is starting to come in cheaper than busheling in some cases, which could force scrap prices down.
One Chicago-based attendee told SteelOrbis that he doesn’t see much strength in the short term, but he also doesn’t see prices falling that much either. “I think we are at soft sideways, waiting for this market to give us more direction about what to expect this summer.”
Additionally, falling US flat steel prices could also be a factor in March scrap prices, as mills might seek to maintain margins with lower scrap prices.