Last week, SteelOrbis reported that scrap market sources throughout the US believed that April pricing was likely to hold at sideways to slightly down from March settled levels.
This week, sources have said that if anything, they believe that “soft sideways is a lot less likely than it was seven days ago.”
This slight shift in sentiment is, several sources said, is based on recent happenings within both the domestic finished steel and scrap export markets.
For example, on Friday of last week, flats sources from throughout the US said they believed that HRC prices were at or near the bottom. Also worth mentioning, is that earlier today, Cleveland Cliffs announced plans to raise HRC base prices to $45 cwt. ($992/mt or $900/nt) FOB mill.
(Although current US HRC spot prices are still trending below Cliff’s last increase announcement, which attempted to set a base of $42 cwt. ($926/mt or $840/nt), sources believe this may be a situation where Cliffs’ is announcing a second increase with the hopes of forcing the first into acceptance.)
In terms of happenings within the East coast export market, earlier today, it was confirmed that an Izmir-based steelmaker closed an ex-US deal for HMS I/II 80:20 scrap at $389/mt CFR, with shredded and bonus grades at $409/mt CFR. A second ex-US booking is rumored to have been closed by another Marmara-based mill for HMS I/II 80:20 scrap at $387/mt CFR, with bonus and shredded scrap prices standing at $407/mt CFR. SteelOrbis has also learned that US-based sellers are now aiming for prices above $390/mt CFR for offers into Turkey.
“I don’t think prices are going up in April but I don’t think anyone sees a reason for prices to tick down,” a source said.”
The April buy cycle is expected to start by the middle of next week.