July scrap pricing in the US Midwest is seen sideways to lower for July, as demand for finished steel products continues to falter, market insiders told SteelOrbis this week.
The sideways-to-down July market call differs from seven days ago, when a sideways-to-June scrap forecast dominated market conversations.
“I can’t say there’s a lot of optimism out there right now,” one Midwest scrap insider told SteelOrbis about the current pricing outlook. “I see July as sideways to down more so than to the upside. It’s still kind of early to tell, but the (market) is fairly negative from the standpoint of (finished) steel pricing as well as considering current high interest rates.”
Sideways to lower pricing for July would peg Ohio Valley busheling scrap at or below $375/gt ($381/mt) delivered to customer location, P&S scrap at or below $355/gt ($361/mt) delivered, shredded at or below $380/gt ($386/mt) delivered to customer, and HMS#1 at or below $320/gt ($325/mt) delivered to customer location. As finished steel pricing faltered through May, June scrap pricing in the Ohio Valley settled overall $20-$40/gt ($20-$40/mt) less than May settled prices, SteelOrbis data shows.
A sideways-to-down July scrap call pegs East Coast busheling at or below $335/gt ($341/mt) delivered, while P&S is expected to come in at or below $320/gt ($325/mt) delivered. Shredded and HMS#1 are expected to come average at or below $370/gt ($376/mt) and $290/gt (295/mt) delivered to customer, respectively.