Sources within the US scrap market say prices will still most likely trend sideways this month, despite a few last-minute cancellation notices that some worried might take the trend from firm sideways to soft-sideways.
However, sources note a similar situation happened before the April buy-cycle, and scrap prices remained firm month-on-month. Additionally, sources report scrap flows are “good enough to support demand, which seems like it will be very consistent with what was needed for April.”
Just prior to the cancellation notices, some in the market thought there was room for a slight uptrend on primes, leading some to believe the notices were a “message” that prime grades should stay level as well.
Another source agreed that the market is “flat,” but depending on how much inventory mills are holding, “there is always the possibility that as the buy cycle starts, the mills will want to buy heavy, as it does feel like the bottom of the market.”
The May buy-cycle is expected to begin next week.