Scrap Market in "New Dynamic" as Exports Wane

According to scrap experts, most of the domestic mills canceled their January orders at the close of business this past Friday when shipment of the past due scrap had not already been made. Cancellations are standard operating procedure by the domestic mills when they believe scrap prices will drop once the new month’s negotiations are complete.

However, not everyone is a believer that all of the steel mills canceled their orders as there have been transportation issues in moving January’s orders and some mills may wish to keep their orders intact – even at higher prices – in order to ensure that they will have enough feed stock for February.