Posted on 11 Feb 2025
US domestic scrap market February trading has not yet fully settled, with Ohio Valley sellers still trying to push for higher prices, Kallanish notes.
Trading kicked off a week ago with a major mill’s bid at $30/gross ton higher for shredded scrap versus January values. However, Ohio Valley sellers are still aiming for increases of $50/gt and more.
The mood in the US domestic market was very volatile last week amid the rapidly changing tariff announcements. Although market expectations went as high as for a $70/gt hike after the initial US tariff announcements, they later cooled after Canada and Mexico tariff imposition was delayed.
Citing large quantities of pig iron purchases from Brazil, US mills piled pressure on Friday on those scrap suppliers that have not yet sold. This was despite numerous bookings done at $40/gt higher on-month for shredded and busheling, and $30/gt for cut grades.
February settlements are expected to be finalised in the initial days of the current week.
For US West Coast business, Taiwanese steelmaker Feng Hsin lifted its scrap purchase price by TWD 300/tonne ($9) on Monday after US-origin containerised HMS 1&2 80:20 offers edged up to $310/t cfr Taiwan. After the deals at around $305/t cfr last week, buyers remained cautious on Monday, uncertain over potential US tariffs.
On the East Coast, market activity, which cooled towards the end of last week, remained lacklustre on Monday. Turkish mills halted scrap purchases amid tariff uncertainties, falling Chinese futures and lower rebar quotes on Monday. Towards the end of last week, offers at above $362/t cfr Turkey for US-origin HMS 1&2 80:20 were rejected by Turkish producers who were aiming to buy at $356-357/t cfr.
Source:Kallanish
