World Ferrous Scrap Market Trend Points to Stability in Prices

SEATTLE (Scrap Monster): The ferrous scrap prices held steady in the U.S. domestic market during October this year. Also, current market trends suggest that overseas and domestic scrap buyers are most likely to scale back their purchases during the remainder of the current year.

The maximum shift witnessed in per-ton prices, as per Fastmarkets Midwest Index was $3.50 in October this year. The shift in prompt No. 1 busheling and obsolete No. 1 heavy melting scrap (HMS) grades were less than $1 per ton. The pricing for the export grades remained stable during the month. The East Coast region reported lack of bookings. On the other hand, overseas scrap demand remained strong on the Pacific Coast. Meantime, the West Coast region saw shipments made during the month.

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The scrap processors in the Pacific Coast stated that availability of scrap continues to remain healthy, although there has been significant margin erosion due to competition from large market players. The recyclers in Midwest region cited slowdown in demand from Turkish mills and uncertainties surrounding the pandemic as well as the upcoming U.S. presidential elections may likely make things even more difficult.

As per data, only two bulk cargoes were booked to Turkey in October this year, as compared with a couple of dozen cargoes booked in the months of June and July. The dip in Turkish buying is feared to impact prices during the final two months of 2020.