Posted on 11 Mar 2025
Scrap prices in the US have not yet settled as US mills entered the market later than expected last week due to the fast-changing tariff implementations, notes Kallanish.
The US domestic market continued developing until the end of last week, with mills releasing bids lower than expectations. Cooling market sentiment were the recent deferral of tariffs placed on Canada and Mexico to April and increased supply as significant material has flowed inland from the coasts.
Although negotiations continued on Monday, with most of the mills’ bids at $20-30/gross ton up for cut grades and $30-40/gt up for shredded and busheling, March values are gradually shaping up around these values. Despite still being a significant increase, these figures are lower than the initial expectations of market players at $50-80/gt.
The early outlook for April trading turned pessimistic unless the expected storm that is foreseen to hit most of the Midwest and large areas of the southern states seriously disrupts supply.
For US West Coast business, amidst a strong US domestic scrap market, US-origin containerised HMS 1&2 80:20 offers increased to $320-325/t cfr Taiwan. Buyers are still seeking to conclude deals at $315/t cfr. Local mill Feng Hsin held prices for scrap and rebar stable on Monday.
On the East Coast, following a Western Turkish mill’s booking of US-origin bulk cargo at $376/t for HMS 1&2 85:15 and $393.5/t cfr for shredded last week, US suppliers are seen targeting $380/t cfr and above in the Turkish market for HMS 1&2 80:20.
Source:Kallanish
