Scrap Prices North America
January 5, 2017
Scrap Negotiations Ongoing, Early News Pointing Toward +$30-$40
Written by John Packard
January scrap negotiations have begun between the domestic (USA & Canada) steel mills and their scrap suppliers. As one large scrap company put it, “Things are slow to develop today, but I’m anticipating some movement by day’s end. This market has been sort of like a junior high dance at this point, with the reluctant boys on one side of the dance floor and the anxious girls on the other..(not sure which group represents the buyers vs. sellers in this metaphor, but I digress.)”
The early money was on ferrous scrap prices increasing by $20 to $30 per ton for January. However, many dealers thought the Turkish steel mills would come in and buy multiple cargoes prior to the New Year squeezing supplier and pushing prices even higher. So far there was one cargo sold to Turkey last week at $296/MT, but nothing has been sold to Turkey since (disruption in home markets and value of Lira vs. dollar is hurting them).
